The global financial crisis that commenced in 2008 has triggered massive increases in unemployment in almost all industrialized nations. Among them, about half reacted by introducing or expanding jobs in the so-called second labour market in 2009. What explains that numerous OECD countries have opted for this type of intervention, while others have not? Through the application of a discriminant analysis, we first identify predictors for the use of direct job-creation measures: the financial room for manoeuvre coupled with a rapid rise in youth unemployment. Subsequently we carefully trace the political events in three most different systems, including Germany, Sweden and the United Kingdom.
