“Location better than expected”
Pandemic rules for short-time work benefits end
05/13/2023 3:22 p.m
With more than 45 billion euros, the Federal Employment Agency is stabilizing the labor market in the corona pandemic. This saved 1.3 million people from unemployment, says the responsible minister. In view of the high level of employment, simplified access to the aid is no longer necessary.
The special rules for short-time work in Germany will expire again shortly. Easier access to short-time work benefits will last until the end of June, but should not be extended then, said Federal Labor Minister Hubertus Heil of the “Rheinische Post. Both the economic development and the situation on the labor market are “currently better than we were in autumn could expect”.
First because of the Corona consequences and then because of the energy price crisis, Heil had facilitated access to short-time work benefits by regulation. The proportion of employees who must be affected by a loss of work before short-time work can take effect has been reduced – from at least one third to at least ten percent. Heil last extended this rule change in December 2022 until the end of June. From July, companies can apply for short-time work benefits again according to the old rules.
“Today, for example, we have the highest level of employment that the Federal Republic has ever had – despite the Corona crisis and the war in Ukraine,” said Heil. The issue now is securing skilled workers. “We will invest more money in the qualification and further training of employees. At the same time, the Federal Employment Agency must be able to build up reserves for future crises.” There are currently only 162,000 employees on short-time work. At the height of the Corona crisis in spring 2020, there were six million. “In the years 2020 to 2022 we spent a total of 45.5 billion euros on short-time work benefits. That is an enormous sum,” the minister summed up.
But that paid off. In a study, the International Monetary Fund found that without the special regulations, unemployment would have risen by three percentage points at the peak of the crisis in the second quarter of 2020. “That corresponds to around 1.3 million people who we saved from unemployment with short-time work,” said the SPD politician. “Companies have been able to retain their skilled workers and it has stabilized aggregate demand.”