MUNICH (dpa-AFX) – The instrument of short-time working has almost halved the economic slump caused by the corona pandemic, according to an evaluation. In the comparative calculation published on Monday by IW Consult on behalf of the Association of the Bavarian Economy (vbw), the decline in economic output in Germany with short-time work was around 45 percent less than in a scenario without. This is “impressive proof of the effectiveness of short-time work,” said vbw chief executive Bertram Brossardt.
The instrument had already proven itself during the financial and economic crisis and will continue to do so in the Corona crisis, said Brossardt. The decisive positive effect is “the faster start-up of production after the crisis, because the companies can keep their workforce.” In countries without short-time work, dismissed workers would only have to be hired again after the crisis. “It not only costs time, but also a lot of money,” said Brossardt.
In addition, short-time work gives companies “the much-needed liquidity to bridge the dry spell” and reduces the risk of bankruptcies. It is “indispensable for job and company security” ./ ruc / DP / zb
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