ifo Institute: Number of Short-Time Workers in Germany Falls to 6.7 million

According to ifo’s estimates, the number of short-time workers in industry rose from 2.2 million to 2.3 million people, i.e., from 31 to 33 percent of the workforce. For instance, 542,000 people in the metal industry were on short-time work in June, compared with 456,000 in May. In other words, the share of all metal industry employees affected by short-time work rose from 40 percent to 48 percent. In the automotive industry, the number rose slightly from 513,000 to 516,000 and remained at 46 percent. In mechanical engineering, the number increased from 316,000 to 354,000, meaning the share grew from 29 percent to 33 percent. In the electrical industry, 260,000 people are now on short-time work instead of last month’s 227,000, i.e., a share of 33 percent in June, up from 29 percent in May.

In administrative and support service activities, the number rose from 660,000 to 672,000, or from 28 percent to 29 percent.

In contrast, the number of short-time workers in the hospitality industry fell from 796,000, or 72 percent, to 672,000, which is still 61 percent of the total workforce; in transportation and storage, the number fell from 423,000 (23 percent) to 308,000 (17 percent).

The number of short-time workers in trade also fell sharply, from 1.3 million to 963,000. In retail, the number shrank from 683,000 to 417,000 – a decrease from 28 percent to 17 percent. In wholesale, the number fell from 362,000 to 331,000, or from 26 percent to 24 percent. In the automotive trade, there were 215,000 short-time workers in June after 289,000 in May, which equates to a fall from 44 percent to 32 percent.

The estimates were prepared for the project “Monthly nowcast of implemented short-time work based on company surveys,” which is funded by the German Federal Ministry of Finance.