ifo Institute: Short-Time Work Affects Numerous Sectors in Germany
Short-time work has affected numerous sectors of the German economy. The hospitality business and large parts of industry and trade have been particularly affected. These findings are based on exclusive ifo Institute survey figures for May. According to these figures, 796,000 people or 72 percent of employees subject to social insurance contributions in the hospitality industry were on short-time work, 513,000 or 46 percent in vehicle construction, and 289,000 or 44 percent in the automotive trade. “This historic number of short-time workers will initially prevent layoffs and company bankruptcies,” says ifo labor market expert Sebastian Link.
In addition, there were 683,000 short-time workers in retail (28 percent), 660,000 in administrative and support service activities (28 percent), 456,000 in the metal industry (40 percent), 423,000 in transportation and storage (23 percent), 362,000 in wholesale (26 percent), 329,000 of the self-employed and at scientific and technical service providers (14 percent), 316,000 in mechanical engineering (29 percent), 243,000 in the chemicals, oil, pharmaceuticals, rubber, plastics, and glass industries (21 percent), 227,000 in the electrical sector (29 percent), and 170,000 in the furniture industry (31 percent).
Other industries were affected relatively little: the construction industry with 22,000 short-time workers (4 percent of the workforce), the finance and insurance industry as well as real estate and housing with 68,000 short-time workers (5 percent), and the information and communication sector with 168,000 (15 percent).
The ifo Institute also estimates that there are 966,000 short-time workers in other service activities (10 percent) and 301,000 in specialized construction activities (22 percent).
The estimates were prepared as part of the project “Monthly nowcast of implemented short-time work based on company surveys,” which is funded by the German Federal Ministry of Finance.
