Short-Time Work Rises in Germany
The number of short-time workers in Germany has risen sharply. In December, it increased to 879,000 people, up from 712,000* the previous month. That now represents 2.6 percent of the workforce, after 2.1 percent in November. These figures are ifo Institute estimates based on its surveys as well as on data from the German Federal Employment Agency. “The rise in coronavirus cases increased short-time work in hospitality and retail in particular,” says ifo researcher Sebastian Link.
The hospitality industry saw its ranks of short-time workers swell from 75,000 to 126,000, and the number in retail rose from 23,000 to 53,000. The figure was particularly high in the automotive industry, at 17.6 percent or 166,000 employees. In manufacturing overall, the number rose from 381,000* to 390,000 people (5.6 percent). “This is due to an increase in supply bottlenecks,” Link says.
Before the pandemic, the number of short-time workers was 134,000 in February 2020; it then jumped to 2.6 million in March and reached a record 6 million in April. This development was a first in Germany, unmatched even in the 2008 financial crisis.
* Revised figure
