Germany Extends Short-Time Work to Protect Jobs

In response to the ongoing economic challenges, the German government has extended the short-time work allowance to 24 months. This measure aims to preserve employment and provide companies with greater planning security during turbulent times. Federal Labor Minister Hubertus Heil views this extension as crucial for retaining skilled workers and supporting businesses.

Particularly affected sectors include the export-driven mechanical engineering industry, where the highest usage of short-time work is observed. Other impacted areas include the production of metal goods, data processing equipment, electronics, and automotive manufacturing. By allowing longer access to short-time work benefits, the government seeks to prevent layoffs and maintain experienced employees in their current roles.

The increase in short-time work usage is significant, with 268,000 workers affected as of September 2024. This figure represents a 76% rise compared to the previous year and nearly triple that of 2022. The initiative, supported by the Federal Employment Agency, is designed to alleviate financial burdens on employers and stabilize the workforce throughout the economic downturn.