Number of Short-Time Workers in Germany Continues to Rise Slightly
The number of short-time workers in Germany rose by just under 9 percent to 220,000 in February. In January, the figure was 203,000 (*). This is the highest number since last June, according to estimates by the ifo Institute based on the ifo Business Survey and figures from the German Federal Employment Agency. “Developments in short-time work reflect the current mild winter recession,” says ifo labor market researcher Sebastian Link. As a share of the workforce, the figure climbed from 0.6 percent to 0.7 percent.
Short-time workers are concentrated in manufacturing, at 2.3 percent or 161,000, up from 2.2 percent or 155,000 in January. In the automotive industry, the figure was as high as 4.9 percent or 46,000 workers. Textile, leather, and paper manufacturers are particularly affected, at 6.7 percent or 24,000 workers. In basic metals manufacturing, 5.8 percent of the workforce – 16,000 people – are on short-time work. In construction, the non-seasonal share is 0.9 percent or 16,000 workers, in trade 0.4 percent or 17,000 people, and across all service providers combined 0.1 percent or 16,000 workers.
In February 2022, a total of 803,000 people – 2.4 percent of the workforce – were on short-time work. At its coronavirus crisis 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.
(*) Revised figure
