A cultural divide: While the West axes jobs, Asia cuts pay

SINGAPORE: From bankers to factory staff, employees in the West face the bleak prospect of losing their jobs as a global recession starts to bite. For colleagues in the East, the pain is more likely to come through a pay cut.

Human resource experts say cultural differences explain why Asian firms try harder to preserve jobs in difficult times, which will stem unemployment and may help keep Asian economies afloat at a time of slowing exports.

The East Asian attitude may also make it easier for firms to recover quickly from the economic downturn since they will not need to rehire or train new staff, leaving some experts predicting a Western shift to Eastern flexibility.