Number of Short-Time Workers in Germany Rises Marginally

The number of short-time workers in Germany has risen slightly. It stood at 144,000 people in May, marginally higher than February’s 140,000*, according to estimates by the ifo Institute based on the ifo Business Survey and figures from the German Federal Employment Agency. “Short-time work isn’t playing a significant role in the current phase of economic weakness,” says ifo labor market researcher Sebastian Link. As a share of the workforce, the figure remained at 0.4%.

Construction recorded a strong increase, albeit it at a low level, to 10,000 workers, up from 3,800 in February. This means the share rose from 0.2%* to 0.5% of the workforce. Otherwise, short-time workers were concentrated in manufacturing, at 111,000, up from 105,000* in February. In the automotive industry, the figure fell from 15,000* to 14,000, or from 1.6%* to 1.4%. In basic metals manufacturing, 2.8% of the workforce – 8,000 people – are on short-time work.

In May 2022, a total of 305,000 people – 0.9% of the German 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%. 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 at the level of unemployment benefits for the hours lost.

* Revised figure.