IFO sees industry in crisis
Short-time work has been increasing again since August
12/02/2022, 1:08 p.m
Rising energy and production costs are forcing certain branches of industry to increasingly resort to short-time work again. The number of short-time workers, especially in the energy-intensive automotive and chemical industries, has increased significantly since August. It is still unclear whether the trend will continue in the coming year.
According to estimates by the IFO Institute, the number of short-time workers in Germany has increased significantly since the summer. From August to November, it increased from 76,000 to 187,000, as the Munich researchers announced.
It is based on IFO surveys and figures from the Federal Employment Agency (BA). Industry was particularly affected: the number of short-time workers rose from 59,000 to 151,000 employees. “In particular, the energy-intensive industries and the automotive industry are increasingly resorting to short-time work. This is in line with the recent weakening of production in these sectors,” explained IFO expert Sebastian Link.
According to the researchers, the number in the auto industry increased from 14,100 to 33,400 people, in the chemical industry from 7,400 to 21,200. “Compared to the last Corona winters, however, the level of short-time work is still very low,” added IFO expert Link. In November 2021, the total number was 750,000 short-time workers.
According to the latest information from the BA, 157,000 employees received economic short-time work benefits in September. Their number has doubled compared to the previous month.