Effects of the Corona Crisis: Despite Short-Time Working - Is Unemployment at Risk for Millions of People?  

Despite short-time benefits, jobs are threatened, say economic experts. Measures must be taken to prevent the recession from deepening.

• The April employment agency figures were at a record high.
• Over 2.6 million people were registered as unemployed - over 10 million people were on short-time work.
• Although short-time work * is designed to prevent unemployment, the instrument may not be enough.

Munich - Companies have to report this to the Federal Employment Agency by the end of the month for which short-time benefits are to be drawn. In April, the employment agency achieved “unprecedented numbers” of applications through the effects of the measures * against the coronavirus * - up to 10.1 million people had been notified of short-time work benefits. This does not necessarily mean that the people will eventually all work short, according to the employment agency. Nevertheless, this number is worrying - both affected and experts in economic development . 

Corona virus and short-time work: Unemployment threatens millions?  

Prof. Dr. Enzo Weber , holder of the Regensburg Chair for Empirical Economic Research, said in a ZDF interview: "In fact, we assume that this was not all the effects, but that unemployment will continue to rise over the next few months ." Although the coffers of the Federal Employment Agency are well filled, one has to reckon with the fact that the federal budget will also have to step in at some point, Weber continues.

It is particularly difficult with the instrument of short-time work that companies have to prepay the money and the benefits can only be reimbursed afterwards. For workers , short-time work allowance can in turn be deceptive security: if their business goes bust with a further downturn in the economy * despite the precautionary measures, unemployment threatens .

Corona virus and short-time work: what's next?

Weber speaks of so-called light switch effects: branches of public life that were switched off during the crisis can be switched on again just as quickly - but how quickly this is possible is still unclear.

The consulting firm McKinsey also recommends in a position paper that Europe must now "back to work" again - under security measures. Because the crisis is also largely a demand crisis: fewer bans on contacts * and more opportunities for people would also boost demand again.

The fears and emotions stirred by the #coronavirus outbreak translate into real economic impact when they change how #Australian consumers spend their money: https://t.co/eoraoou7Kl pic.twitter.com/5sRZtPYtvm

Weber expects the industry , which is also hard hit by Corona , to relax because the global economy and thus exports will also recover in the course of the year . But one has to make sure that the additional unemployment does not solidify: “We have to be prepared for this by investing very intensively in qualification. For example with an education bonus. "

Merkur.de is part of the Germany-wide Ippen-Digital editors network.

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