Germany's Labour Market in Coronavirus Distress - New Challenges to Safeguarding Employment

Arbeitspapier

We analyse measures of internal flexibility taken to safeguard employment during the Coronavirus Crisis in comparison to the Great Recession. Cyclical working-time reductions are again a major factor in safeguarding employment. Whereas during the Great Recession all working-time instruments contributed to the reduction in working time, short-time work (STW) now accounts for almost all of the working-time reduction. STW was more rapidly extended, more generous, and for the first time a stronger focus was put on securing household income on a broad basis. Still, the current crisis is more severe and affects additional sectors of the economy where low-wage earners are affected more frequently by STW and suffered on average relatively greater earnings losses. A hypothetical average short-time worker had a relative income loss in April 2020 that was more than twice as large as that in May 2009. Furthermore, marginal employment is affected strongly but not protected by STW.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: GLO Discussion Paper ; No. 840

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Business Fluctuations; Cycles ; Labor Economics Policies ; Demand and Supply of Labor: General
• Subject: Internal Flexibility Short-Time Work ; Business Cycles ; Great Recession ; Coronavirus Crisis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Herzog-Stein, Alexander ; Nüß, Patrick ; Peede, Lennert ; Stein, Ulrike
• Event: Veröffentlichung
• (who): Global Labor Organization (GLO)
• (where): Essen
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/233971
• Last update: 10.03.2025, 11:43 AM CET