Short-time work in Germany during pandemic leads to severe income losses.
The article examines how Germany's labor market responded to the Coronavirus Crisis by using measures like short-time work to protect jobs. Short-time work was the main tool used to reduce working hours and support household income during the crisis. However, the current crisis affected more sectors of the economy compared to the Great Recession, leading to larger income losses for low-wage workers. In April 2020, the average worker on short-time work experienced more than double the income loss compared to May 2009. Additionally, part-time workers were strongly affected by the crisis but were not as well protected by short-time work measures.