ifo Institute: Decline in Short-Time Work Is Slowing Down in Germany
The rate of decline in short-time work in Germany was much slower in October than in the previous months. According to exclusive ifo Institute estimates and calculations, the number of employees affected fell only by around 450,000 to just under 3.3 million. Previously, the decline was around one million people per month. This means 10 percent of employees subject to social insurance contributions are still on short-time work in October, following 11 percent in September. “Short-time work is proving particularly persistent in industry, where it still affects 19 percent of employees or 1.3 million people,” says ifo labor market expert Sebastian Link.
“There has been virtually no decline, especially in the metal, electrical, and mechanical engineering sectors. We see a slight improvement, albeit from a poor starting point, among car manufacturers and their suppliers,” Link adds. The metal industry is in the lead with 29 percent of the workforce (330,000), together with mechanical engineering, also at 29 percent (320,000). The electrical and electronics industry is next with 23 percent (185,000), followed by vehicle construction with 21 percent (240,000).
Among service providers, short-time work fell only from 12 percent to 11 percent of the workforce. The hotel and restaurant industry continues to top the list here with 26 percent of employees or 290,000 people. In administrative and support service activities, including temporary employment, travel agencies and tour operators, and organizers of trade shows, the figure is also still high at 17 percent or 390,000 people.
