Coronavirus Drives Up Short-Time Work in Germany
The number of short-time workers in Germany has risen sharply. It rose to 900,000 people in January, up from 780,000 (revised figure) the previous month, to reach 2.7 percent of the workforce, up from 2.3 (revised figure) percent in December. These figures are ifo Institute estimates based on its surveys as well as on data from the German Federal Employment Agency. “The sharp rise in coronavirus case numbers drove up short-time work in hospitality, retail, and other services,” says ifo expert Stefan Sauer. “Manufacturing, though, was a bright spot: short-time work fell here thanks to the improved availability of intermediate products.”
The increase was particularly acute in hospitality, where almost one-quarter of employees (23 percent) are currently on short-time work. In absolute terms, that is 240,000 people, up from 90,000 in December. In retail, the number rose by 45,000 to 120,000 employees, or 4.9 percent of workers. In manufacturing, the number of short-time workers fell from 285,000 (revised figure) to 218,000 (3.1 percent); this includes the automotive industry, where the number fell from 117,000 (revised figure) to 86,000 (9.1 percent).
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 unmatched in Germany, even in the 2008 financial crisis.
