The Furlough plan saves millions of jobs

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At the height of the coronavirus crisis, Germany’s joy scheme (known as short-term work) saved more than six times as many jobs in arithmetic terms as at the height of the coronavirus crisis. economic and financial crisis of 2009. According to a new study by The Hans Böckler Foundation’s Institute for Macroeconomic Policies (IMK), the widespread furlough scheme saw the average number of hours worked per employee in Germany fall by a 17.6 in the second quarter of 2020 compared to the fourth quarter of 2019. In the three equivalent months during the 2009 period, the reduction relative to all employees was 3.1 hours on average. In arithmetic terms, this corresponds to just under 2.2 million jobs saved in the midst of the crisis in 2020 compared to some 330,000 jobs during the economic and financial crisis.

According to the IMK analysis, the legal scheme of advancement therefore plays an absolutely dominant role in securing employment during the pandemic. According to the IMK, the federal government took this into account, the IMK says, facilitating access conditions more quickly and generously than in 2009. According to the IMK, the legal recharge of the furlough bonus after several months of reception is also a noticeable improvement.

In their study, Professor Alexander Herzog-Stein and Dr. Ulrike Stein of the IMK and their co-authors Patrick Nüss and Lennert Peede of the universities of Kiel and Münster, compare the severe economic crises of 2009 and 2020. In both cases, employment fell. much less than economic production, as many jobs were saved during the crisis by drastically reducing the working day over a period of time. As the researchers point out, the use of a furlough scheme as an economic policy crisis management tool has improved even more than in 2009.

Source: IMK





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