Short-time work hits German wages in second quarter
Gross monthly earnings for full- and part-time workers in Germany fell 2.2% on average in the second quarter from a year ago, due mainly to the wide use of short-time work during the coronavirus crisis, the Federal Statistics Office said on Tuesday, Trend reports with reference to Reuters.
The hardest-hit sectors were hotels and hospitality, the auto sector and tour operators, it said.
“The broad use of short-time working due to the coronavirus pandemic had a negative impact on the level and development of gross monthly earnings and working hours,” the Office said in a statement.
It added, however, that the short-time work programme, under which employees temporarily work shorter hours but keep their jobs while the state makes up the shortfall, cushioned the loss of income for employees to a large extent.
The Ifo institute said last week that the number of people in Germany on short-time work had fallen to 5.6 million.
Hourly earnings before tax were not hit by short-time work, rising 2.6% on average in the second quarter from the same period last year, said the Office.