Berlin (dpa) – The number of workers signed up for a German furlough scheme to avoid mass lay-offs during the coronavirus pandemic fell considerably in August, according to a study by the ifo research institute.
The number of people on short-time work, in which the state steps in to cover the bulk of wages for struggling companies, was 4.6 million last month, down from 5.6 million in July, the Munich-based researchers said on Thursday.
That amounted to 14 per cent of employees subject to social insurance contributions, down from 17 per cent, the ifo reported, citing the results of its latest business survey.
“The decline was relatively hefty in trade, hospitality, and among administrative and support services, but much less pronounced in manufacturing,” ifo labour market expert Sebastian Link said in a statement.
Industry was particularly dependent on the programme, after having been rattled by sweeping restrictions, supply chain disruption and a collapse in demand earlier in the year.
The ifo estimated that the number of short-time workers in industry fell only slightly in August, from 2.1 million to 1.9 million, or from 30 per cent to 27 per cent of the workforce.
Short-time work was first introduced in Germany in response to the financial crash a decade ago, before being revived this year to cope with the coronavirus crisis.
Last week, the German government agreed to extend the scheme until the end of next year.
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