Short-Time Work in Germany Increases Slightly
The number of short-time workers in Germany rose slightly in January. There are currently 205,000 people on short-time work, up from 186,000 in December, according to estimates by the ifo Institute based on its Business Surveys and figures from the German Federal Employment Agency. This corresponds to 0.6 percent of the workforce. “Short-time work remains at a low level, which is fairly typical for a very mild winter recession,” says ifo researcher Sebastian Link.
Short-time work is most prevalent in the manufacturing sector. At 6.4 percent of the workforce, or 23,000 people, the share was particularly high in the paper, leather, and textile industries. The automotive sector came next at 4.7 percent, or 44,000 people, and then manufacturers of basic metals at 4.4 percent, or 12,000 people. Among printing companies, the figure was 3.5 percent (4,000 people), followed by chemicals/pharmaceuticals/rubber at 2.6 percent (23,000 people). In metal products manufacturing, it was 2.3 percent, or 19,000 people. In services, it was 0.1 percent, or 16,000 people.
“Compared to the coronavirus period, very few people are claiming the short-time allowance,” Link adds. In January 2022, a total of 847,000 people – 2.5 percent of the workforce – were on short-time work. At the peak in April 2020, the figure was as high as 6 million, or 17.8 percent. Short-time work is a type of part-time unemployment that applies particularly when there is a temporary lack of orders. Employees receive a short-time allowance for the hours lost.
