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Germany: Short-time work covers tense situation – VP Bank column

The unemployment rate in June rose seasonally adjusted from 6.3% to 6.4%. The slight increase in the unemployment rate belies the difficult situation on the German labor market. Short-time work covers the tense situation. Nonetheless, 69,000 new unemployed people were seasonally adjusted in June. As a result, 678,000 people lost their jobs in the second quarter alone. It reveals the whole brutality of the corona pandemic.

Although the economic recovery is currently relieving the pressure somewhat, there can be no talk of rosy employment prospects. Many areas of the German economy are still suffering from the consequences of the virus. The hotel and restaurant industry and the event industry are at the forefront. The manufacturing sector is also in need due to weak foreign demand.

Short-time work will continue to be an important part of crisis management. The German labor market is facing difficult times in the coming months. The high-export industry is suffering from the global recession. A global wave of bankruptcies is already emerging for the autumn months. Creative solutions are still needed to retain employees in their companies beyond the crisis. The companies need their specialists to be able to guarantee a later upswing. The German government must therefore open up new occupational safety channels to employers.

Disclaimer: This text is a column of the VP Bank. The content of the column is not the responsibility of 4investors and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

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