BA boss warns of lockdown: job market survives crisis "surprisingly well"

Around 150,000 people in Germany are losing their jobs because of the Corona crisis. From the point of view of employment agency boss Scheele, things could have been worse. And he is confident that the situation could remain stable – but only on one condition.

Despite the corona crisis, the head of the Federal Employment Agency (BA), Detlef Scheele, does not expect a significant increase in unemployment. "The job market is surviving the pandemic surprisingly well," he told the newspapers of the "Funke Mediengruppe". So far 150,000 people have lost their jobs because of Corona. "That is bad for everyone concerned, but with 33.5 million employees subject to social security contributions, not a landslide."

As long as the number of infections does not skyrocket, politics will intervene locally and no longer nationwide. The job market will withstand that, emphasized Scheele. "A complete lockdown would be terrible, but we don't believe that." He also doesn't expect a wave of bankruptcies to come, added Scheele.

The CEO of the employment agency spoke out in favor of not reintroducing the suspended obligation to file for bankruptcy at the turn of the year as originally planned. "The Ministry of Justice wants to legally enable companies to carry out a restructuring without bankruptcy," he said. "With a regulation like the one the Justice Department is planning, you could avoid bankruptcies."

A number of sectors will not reach the pre-crisis level again, Scheele predicted, citing the automotive and supplier industries as an example. "There will be downsizing, but – according to what you can see – in an orderly process with the social partners, for example through retirement or voluntary departure," added Scheele.

. (tagsToTranslate) Economy (t) Labor market (t) Federal Employment Agency (t) Detlef Scheele (t) Corona crisis