Economy Pushes Major German Industries to Adopt Short-Time Work and Layoffs
Temporary employment and job losses prevail amidst the ongoing economic recession's persistent influence
Hangin' on by the skin of their teeth, German industrial titans have adopted a rough strategy to tackle the continuous economic slump: a combination of short-time work and job slashes, as per a report by the Ifo Institute in Munich. This grim reality unfolds as companies seem to view the current hard times as more than just a passing storm.
According to the Ifo survey in February, a steady 17.9% of industrial giants have embraced the short-time work model. Compared to November 2024, this figure remained relatively stable, starting off from 16.9%.
Peeking into the future, 25.4% of industrial companies anticipate implementing short-time work over the next three months, a slight increase from the 24.4% projected in November 2024.
The metalworking and metal goods sector leads the pack when it comes to short-time work, with a whopping 40% of businesses applying the practice. The automotive industry follows suit, accounting for 27% of short-time work instances. Meanwhile, the furniture industry, mechanical engineering, and electrical equipment manufacturing sectors share a common predicament with 25% of companies each embracing short-time work, according to Ifo.
This turn of events was first reported by ntv.de, backed by AFP.
- As a consequence of the industrial downturn, many companies are considering implementing vocational training programs to upskill their workforce and adapt to the changing economic conditions, as seen in the community policy of numerous German industries.
- Based on the latest Ifo survey, it is anticipated that within the next three months, an additional 1% of industrial companies will adopt the short-time work policy, which allows workers to receive partial unemployment benefits, as they struggle through the economic downturn.
- With the rise of short-time work in industries like metalworking and metal goods, vocational training could play a vital role in enhancing workers' skills and ensuring their continued employment, especially during periods of economic hardship, such as the current one, as communicated through WhatsApp groups among industry professionals.
