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Application for short-time work allowance (symbol picture)
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Jens Büttner / dpa
After the corona kink in the German economy, the number of short-time workers continues to decline.
At the end of September, one million fewer people were on short-time work than in the previous month, estimates the Munich-based Ifo Institute.
In total, 3.7 million people were still on short-time work after 4.7 million in August.
This means that their share of employees subject to social insurance contributions fell from 14 to eleven percent.
"The decline in short-time work is progressing steadily," said Ifo labor market expert Sebastian Link.
"However, the proportion of those employed in industry remains particularly high."
An estimated 1.47 million people were still on short-time work there in September, which corresponds to 21 percent of the workforce.
For service providers it was 1.23 million or twelve percent, in retail 406,000 or nine percent, as the Munich researchers estimate on the basis of their monthly business survey among thousands of companies.
In the construction industry, on the other hand, only 5,000 short-time workers were counted, which corresponds to a share of one percent.
In the other sectors, the Ifo Institute estimates the number of short-time workers at 622,000 or five percent of the workforce.
Ifo expects 6.6 percent growth in the summer quarter
Only recently, the federal cabinet decided that companies should be able to more easily send their employees to short-time work.
The financial aid for short-time working to cushion the corona crisis is to be extended until 2021.
The entitlement to short-time work allowance is also to be temporarily extended from 12 to 24 months.
Employers will also receive 100 percent of the social security contributions due for short-time work from the Federal Employment Agency by mid-2021.
The additional expenditure for the coming year is expected to amount to around five billion euros.
Economists had criticized that the short-time work allowance could inhibit necessary changes in companies with a view to structural change.
Federal Labor Minister Hubertus Heil rejected the objections.
The short-time work allowance helps companies that currently have no business: "Everyone knows that this is a necessary bridge."
From a macroeconomic perspective, after the historic Corona slump of 9.7 percent in gross domestic product in spring, the Ifo Institute expects growth of 6.6 percent in the summer quarter that is drawing to a close.
Even in the forthcoming fourth quarter, there should be a significant plus.
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