Short-Time Work in Germany Decreased in March
The number of short-time workers in Germany fell in March. According to estimates by the ifo Institute, 2.7 million people were on short-time work, down from 2.9 million (*) in February. That represents 8.0 percent of employees subject to social insurance contributions, down from 8.7 percent in February. “There was a decline across almost all sectors of the economy, especially in manufacturing. The slight easing of restrictions also led to a decline in trade and hospitality. However, the share of short-time workers in hospitality remains very, very high at 50.8 percent", says ifo labor market expert Sebastian Link.
In trade, the proportion of employees on short-time work is 15.8 percent, down from 17.8 percent, or 718,000 people, down from 811,000. Retail (20.2 percent) and motor vehicle sales (11.7 percent) are currently making particularly heavy use of short-time work, while wholesale is at 10.0 percent. Among the service providers outside the hospitality sector, the number of short-time workers is likely to have fallen slightly in March.
In contrast, industry saw a significant drop in short-time work to 6.3 percent, or 436,000 people, from 7.1 percent, or 494,000 people. This means the proportion of employees on short-time work in industry has fallen steadily since April 2020, and is now below the average for the economy as a whole.
(* Revised figure; the original ifo estimate for February was 2.8 million short-time workers)
