Germany’s economic troubles are deepening, with short-time work benefits skyrocketing, signaling a growing crisis.
According to the Federal Government’s report to the Committee on Labor and Social Affairs, the number of employees receiving short-time work benefits has more than doubled compared to last year. In July 2024, around 212,000 workers were on short-time, up from just 107,000 in 2023, reflecting a drastic rise. The figure is now far higher than pre-pandemic levels, which were around 47,000 in July 2019.
This rise in short-time work indicates that Germany is grappling with severe economic weakness. The government admits that short-time work in 2024 has surpassed the numbers from the pandemic’s peak, signaling the ongoing economic challenges the country faces.
Short-time work allows companies to reduce employees’ hours temporarily to avoid layoffs, typically in response to a dip in demand or canceled orders. However, the law sets high standards for this arrangement, requiring economic reasons for the reduction in working hours. The majority of those affected are in the industrial sector, especially in areas like mechanical engineering, metal production, and electrical manufacturing, which have seen notable increases in short-time work.
AfD spokesperson René Springer has pointed to these rising numbers as proof that Germany is in the midst of an economic crisis, with core industries like mechanical engineering and electronics particularly affected. He blames the government’s policies for the situation, claiming they’ve led to deindustrialization. Companies, especially in the automotive sector, are already taking action: Stuttgart’s Mahle and commercial vehicle manufacturer Paul have both announced moves to implement short-time work at various locations. Additionally, mechanical engineering company ETO has followed suit after a drop in orders.
