ifo Institute: Short-Time Work in Germany Increasing Again
For the first time in months, the proportion of companies implementing short-time work increased in November in Germany. It rose to 28.0 percent, up from 24.8 percent in October, according to surveys by the ifo Institute. Most notably, among hotels the proportion rose from 62.9 to 91 percent of companies, in hospitality from 53.4 to 71.7 percent, and among travel agencies and tour operators from 88.0 to 91.1 percent. “It is precisely in these sectors, which have been massively affected by the partial lockdown, that short-time work is once again very prevalent,” says ifo labor market expert Sebastian Link.
The increase was found in almost all major economic sectors. Among service providers, the proportion of companies with short-time work grew from 24.0 to 30.6 percent; in trade, it grew from 18.8 to 20.7 percent, and in construction from 7.4 to 9.0 percent. Only in manufacturing was there a slight decline, from 31.9 to 30.5 percent.
Some sectors also reported sharp declines against the trend, among them the automotive industry from 50 to 36.7 percent, the publishing industry from 42 to 34.7 percent, and employment activities from 64.2 to 52.5 percent of companies. This also applies to manufacturers of electrical equipment (from 43.4 to 34.9), printing houses (from 47.6 to 39.1 percent), and computer manufacturers (from 49 to 38.4 percent).
The results are based on an additional question in ifo Institute's monthly Business Survey for November. Some 7,000 companies responded to that question about current short-time work.
