Due to the new restrictions in the pandemic, the number of companies with short-time work is increasing again. The sectors with hard closings are particularly affected. But there are also some bright spots, as the Ifo Institute reports.
Dhe new restrictions with which the corona pandemic is to be contained have caused short-time working in Germany to rise again. The proportion of companies with short-time work rose in November from 24.8 percent in the previous month to 28.0 percent, the Munich-based Ifo Institute announced on Monday in Munich. The researchers refer to answers to an additional question about the current short-time work in the institute’s monthly business survey. Reports were received from around 7,000 companies.
In times of crisis, short-time work is a crucial instrument to prevent widespread layoffs of employees. According to Ifo, hotels (62.9 to 91 percent), restaurants (53.4 to 71.7 percent) and travel agencies and tour operators (from 88.0 to 91.1 percent) recorded particularly significant increases. “Especially in these industries, which have been massively affected by the partial lockdown, a great deal of short-time work is being implemented again,” said Ifo labor market expert Sebastian Link.
The increase has occurred through almost all major industries, the researchers said. Short-time working among service providers rose from 24.0 to 30.6 percent of companies, in retail from 18.8 to 20.7 percent, and in construction from 7.4 to 9.0 percent. In the industry, on the other hand, there was a slight decrease from 31.9 to 30.5 percent. The service sector is much more affected by the corona restrictions than industry.
Individual industries have even reported significant declines in short-time work, including the automotive industry from 50 to 36.7 percent. There were also declines among manufacturers of electrical equipment, printing plants and manufacturers of data processing equipment.