Mega Crash without the unemployed? Why short-time work many of the job losses are only postponed

The Coronavirus infects not only people, but also the economy. This is well known. And now, as the symptoms become visible, many European countries, an apparent

Mega Crash without the unemployed? Why short-time work many of the job losses are only postponed

The Coronavirus infects not only people, but also the economy. This is well known. And now, as the symptoms become visible, many European countries, an apparent patent recipe: the short-time work. You should protect the labour market, in front of one of the most violent side-effects of the pandemic, mass unemployment,.

10.1 million applications for short-time work

at the end of April had requested that companies in the European Union (EU), as well as the UK and Switzerland for around 50 million Workers short-time working. Of these, 10.1 million applications was accounted for by Germany alone. Thus, the Option could protect short-time work in this country, more than a quarter (26.9 per cent) of all employees in front of a short-term threat of job loss.

Although, in the end, is likely to be the number of applications significantly higher than the number of employees, the company will send is actually in short-time work, because companies apply for often preventive for larger groups of short-time work. The crisis year of 2009: at that Time, the work received the employment agencies in the short view for 3.3 million people in the top but there were only about 1.4 million workers on short time. However, the increase in the displayed short-time work has exceeded ten million, the expectations of experts significantly.

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short-time work: mass unemployment, as in the United States should

What is the cost of labour, finally, will be prevented is difficult to predict, but in the end, a number with nine zeros for all of them. "Short-time work is expensive, but unemployment is many times more expensive," made to the Minister of labour, Hubertus Heil (SPD) significantly. The Federal Agency for work to be started around 26 billion euros reserves in the year. In the course of the year will show whether the return of rich layers or Liquidity support of the Federal government to be necessary.

For the Minister of labour is: A similar tragedy as in the United States must be avoided. There are 20.5 million people lost in the April of your Job. Since the beginning of the corona crisis now has around 38 million have applied for unemployment assistance. The US Central Bank (Fed) in the coming months, an unemployment rate of almost 20 percent would be possible. Currently, she is almost 15 percent. Tell us about your experience in the Corona-crisis

workers or currently unemployed and not enough money are short? Tell us about your experiences by E-Mail with the subject "short-time work and Hartz IV" to

new hires, there are barely any

"The short-time working is our strong bridge over a deep economic valley," promised the Minister of labour of healing, with a view to the volatile situation in the Overseas. But as a remedy it is claimed, labour market policy Instrument of short-time working can work? Especially in the long term? Unemployed? These are 10 things you need to know, Our PDF guide explains how you can apply for money and what else you need to know, if you become unemployed.To the PDF guide

Temporarily, at any rate, the short-time work prevented that the unemployment statistics will explode. A significant increase was there nonetheless. The Federal employment Agency (BA) registered in April, an increase in the number of unemployed to 308.000 to just under 2.65 million. The are approximately 415,000 more than in April of the previous year. The unemployment rate is now at 5.8 percent. "The short-time work seems to be working," said BA chief Detlef Scheele, during the presentation of the Figures in Nuremberg in the data. "Redundancies don't take place on a large scale. The businesses keep employees.“

may seem a low number compared to the United States, the statistics of the Federal employment Agency also shows that The demand for labour in the Farms is heavily broke in.

this is Particularly evident when looking at the current demand for new workers. In April 2020, only 626.000 Vacancies were reported to employment agencies, which amounted to 169,000, less than a year ago. In clear text this means: a Particularly difficult career entrants such as University graduates and apprentices have it currently. Companies hardly. The labor market expert Holger Schäfer said in a recent Interview: "Even in economically good years, like last, millions of people are unemployed, but then find quickly a new job. This is different now because almost all companies are affected by the Corona-crisis.“

the duration of The crisis is crucial for the unemployment figures

way to Break orders and sales of a company, would use them according to Schäfer, usually in succession various tools to fix your economic difficulties. For this purpose, the stop of new hires, the waiver of temporary workers and applying for of short-time work count. But even that could not prevent some companies still go bankrupt and the employees lose their Jobs. The shock in unemployment could occur with a significant delay.

Whether from short-time work increased unemployment will depend, in the end crucially on how long the crisis lasts. Also, because the non-paid work money forever. Currently, in the rule for a period not exceeding twelve months.

read More here: workers in short-time working, shock: What are the legal pitfalls you

you must be heading to know The Institute of the German economy (IW), the Federal Republic of Germany on the largest recession in its history. The recent economic forecast of the IW anticipates that the German gross domestic product (GDP) will decline in 2020 to nine percent. Only in the third quarter of 2021, the researchers expect that Germany will reach the level of last year – at least as long as there will be no new global shock.

crisis is likely to take longer than many suspect

only in the short but also in the medium term, the Corona will remain crisis-a challenge for the economy. Accordingly, the behavior of the firms. In an IW-economic survey of companies, respondents look nearly as pessimistic on the time up to and including 2021, such as the upcoming spring and the summer of 2020, the impact of the Corona-crisis is still acute. "In spite of the relaxations is not thinking at many companies, a return to normalcy so quickly," stated the IW economic expert Michael Grömling. "The worst of this crisis is still not over. The recovery will take longer than many suspect.“

the Crux of The matter: If, due to lack of revenues, the viability of the company is at risk, despite the numerous government support, the problems are only postponed, even redundancies. Everything you know about your pension

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The Institute for labour market and occupational research (IAB) looks at the labour market due to the massive pressure. Enzo Weber, head of the IAB Research Department "forecasts and macroeconomic analysis," warns: "a short work will save many Jobs, but, nevertheless, the work of agencies expect in the next few months, a strong increase in unemployment." Since short-time work is not sufficient in itself, it is extremely important to set Stimulus, to support new hires – even where, in spite of the current crisis, shortage of staff rule and to avoid solidification of unemployment.

In Italy was short-time work is not a model of success

Because that short-time work is not always successful, also shows the view to the South of Europe. Italians use the "German recipe" of the short-time working since years, in phases of recession, Employees in the company hold. Also in the financial crisis of 2008/2009 it was used. Nevertheless, the unemployment rate rose in subsequent years to more than 12 percent. The pre-crisis level not reached Italy.

What the example shows? Short-time work, the threat of employment puts the brakes on losses in the best case. Permanently or completely stop, can not you these but. As the crisis is in this country to go out is open. Much is likely to depend on a threat of a second wave of Infection and their consequences. Display you Find your perfect credit card for card scout!

After all, The IAB was recently in a study that the German labour market will not slump to the same extent as the economy. A hopeful sign, given the economic challenges in the coming months.

  • This might interest you: If short-time work, enough money to live on: This is the Hartz to note IV-application

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Date Of Update: 27 May 2020, 15:26