Press release -

ifo Institute: Short-Time Work Continues To Increase in German Industry

More and more industrial companies in Gemany are introducing short-time work. This is the result of the latest survey conducted by the ifo Institute, which found that the share of companies to have introduced short-time work grew to 8.4 percent in December 2019 – its highest level since 2010. What’s more, the share of companies expecting to introduce short-time work over the next three months has risen to 15.3 percent.

“According to estimates by the ifo Institute, the actual number of short-time workers is likely to exceed 100,000 in December,” says Timo Wollmershaeuser, Head of Forecasts at ifo. “The recession in industry is having an ever broader impact on the labor market. The option of short-time work gives companies a way to retain their skilled workers despite a slump in orders. When the order situation improves, companies can up their workers’ hours again – saving them the trouble of looking for new hires.”

According to the ifo survey, short-time work in German industry is currently concentrated in eight sectors. The metal production and processing sector is hardest hit, with a share of 16 percent of companies. Over the next three months, fully 40 percent of companies in this industry intend to make use of short-time work.  While such arrangements are currently in place mainly in Rhineland-Palatinate, Saarland, and Bavaria, a major increase in short-time work is also anticipated in Baden-Wuerttemberg, Saxony, and North Rhine-Westphalia.

Figures from Germany’s Federal Employment Agency confirm that the economic situation has driven short-time work up sharply – to just under 90,000 people as of December 2019. However, these estimates are based only on notifications of short-time work that have already been approved. “The actual figures for short-time work will not be available until much later,” Wollmershaeuser explains. “But given the close statistical relationship between those figures and ifo expectations, it’s likely that the Federal Employment Agency’s projections will be revised upwards in the coming months.”

 

 

english graphic Press release short-time work indicators
Graphic, We currently have short-time work
graphic over the next 3 months we will probably have short-time work
Graphic we currentlich have short-time work
Economists Panel graphic combating poverty in old age Länder
Contact
Prof. Dr. Timo Wollmershäuser

Prof. Dr. Timo Wollmershäuser

Deputy Director of the ifo Center for Macroeconomics and Surveys and Head of Forecasts
Tel
+49(0)89/9224-1406
Fax
+49(0)89/907795-1406
Mail
Harald Schultz

Harald Schultz

Press Officer
Tel
+49(0)89/9224-1218
Fax
+49(0)89/907795-1218
Mail