ifo Institute: Short-time Work in Germany Concentrated to Date in Eight Sectors
To date, short-time work in German industry has been concentrated in eight sectors. This is the result of the ifo Institute’s latest survey. The industry with the largest share of companies to have introduced short-time work – 30 percent – is other vehicle construction, i.e., manufacturers of ships, trains, aerospace vehicles, and tanks.
Next comes the textile industry with 25 percent of its companies, followed by 18 percent of companies in leather, leather goods, and footwear. The figure is 9 percent for metal production and processing, 7 percent for mechanical engineering, 7 percent for cars and car parts, 6 percent for rubber and plastic goods, and 5 percent for electrical equipment.
The average for the manufacturing sector is currently 3.8 percent. Other sectors are currently either well below this level or have zero short-time work. “According to the survey, the proportion of companies on short-time work is expected to increase to 8.5 percent over the next three months. Industries that are important for Germany, such as automotive, mechanical engineering, and chemicals, will be hit harder,” says Timo Wollmershaeuser, Head of Forecasts at ifo.
Regarding the outlook for the next three months, 34 percent of textile manufacturers expect to introduce short-time work, followed by 28 percent in other vehicle construction, 20 percent in metal production and processing, 17 percent in leather goods and footwear, 16 percent of car and car part manufacturers, 15 percent in rubber and plastic goods. In mechanical engineering, the figure is 11 percent, in metal products 9 percent, in electrical equipment manufacturing and in furniture 6 percent, 3 percent in the manufacture of data processing equipment, and 3 percent for paper and cardboard. In a further eight sectors, less than 5 percent of the companies expect short-time work, including the chemical industry with 2 percent.
