Graph 7  Share of Labour Force on Wage Subsidy Schemes* %  % New Zealand  40  40 France Canada  20  United Kingdom  20 Spain  Germany 0  M A M  J  J A 2020  S O N D  J  F M A M 2021  J  0  *  Share of average labour force size over 2019; data may not yet be complete as in some economies claims can be retroactively submitted; data in some economies refer to number of jobs rather than heads Sources: ifo Institute; national sources; RBA; Refinitiv  The benefit of these schemes in preserving the employee–employer relationship is clear.
In countries that did not use these schemes, such as the United States, most of the adjustment to lockdown took the form of people losing their jobs (Graph 8). Unemployment spiked up dramatically. And though it came down quickly, employment is still well below pre-pandemic levels there. By contrast in Europe and Japan, almost all of the adjustment has been in average hours worked.