Germany’s state offers blueprint of lockdown exit strategy

Only German energy suppliers, sewage disposal and pharmaceutical companies had not set their employees to short-time work during the coronavirus pandemic, according to ifo.

In Germany’s gastronomy, almost every business, or 99 percent, had introduced short-time work. In the hotel industry, 97 percent of companies had set their employees to short-time work, according to the ifo survey.

Germany’s important car industry also reported particularly high figures, with 94 percent of companies implementing short-time work, according to the survey.

Other industries, such as aviation and clothing manufacturers, also showed figures of more than 90 percent.

“This tops all figures from the 2009 financial crisis,” said Klaus Wohlrabe, head of surveys at ifo.

Some German industry sectors still reported comparatively low levels of short-time work. In the chemical industry, for example, only 30 percent of companies reported short-time work.

Last week, the Federal Employment Agency (BA) had announced that more than 750,000 companies in Germany had applied for short-time work for a record 10.1 million employees by late April due to the coronavirus crisis.

During the financial crisis in 2009, Germany’s employment agencies had only received applications for short-time work for 3.3 million people.

“For companies, short-time work is a way to bridge a period of low sales,” said Wohlrabe. “However, if this period goes on long enough, we will also see jobs being cut completely.”