German companies slowly reduce short-time work
Source: Xinhua | 2020-09-01
The number of German companies using short-time work continued to "fall slowly" as the share declined from 42 percent in July to 37 percent in August, according to a survey among 9,000 companies by the German ifo Institute published on Monday.
The governmental short-time work allowance, which was extended from 12 to 24 months last week, financially supports companies to keep their employees at reduced hours during the COVID-19 crisis.
"The proportion of companies with short-time work has declined across almost all sectors, even if the overall numbers are still high," said ifo labor market expert Sebastian Link.
The share of companies making use of short-time in the trade sector and service sector fell to 33 and 26 percent in August respectively. According to ifo, construction sector was "relatively unaffected" at only seven percent.
Manufacturing sector, however, still relied heavily on short-time work. According to ifo, more than one in two German manufacturing companies still made use of the short-time work allowance in August. In the service sector, 88 percent of travel agencies and tour operators used short-time work.
The short-time work program was implemented by a record number of companies at the height of the COVID-19 crisis. In May, 7.3 million employees in Germany were on short-time work, more than during the financial crisis in 2009, said ifo.
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