Spending on short-time work rises to more than 20 billion euros. Millions of employees receive short-time allowance due to the corona pandemic. The expenditure of the Federal Employment Agency is increasing rapidly.
Spending on short-time work rises to more than 20 billion euros
The costs of short-time work as a result of the corona pandemic have passed the 20 billion euros mark. A spokesman for the Federal Employment Agency (BA) told Reuters news agency that more than half of this was accounted for by payments to employees who had to accept reduced wages due to the forced break. Around 8.7 billion euros were paid to employers as reimbursement for social contributions. Last year, for economic reasons, spending on short-time work amounted to 131 million euros by the end of November. You can browse here for global trade news.
Short-time work has been going down since May
At the height of short-time work in May, almost six million employees received short-time work benefits. Since then, the numbers have been falling according to BA projections.
Recently, however, the number of employees on short-time work has risen again, calculates the Ifo Institute in Munich. The reason: the new officially ordered closings in the fight against the corona virus. Accordingly, the proportion of companies with short-time work was 28 percent – there are significant increases in hotels, tour operators and in the catering trade.