Shorter Work Hours Lower German Wages in the Second Quarter

Highlight

  • Gross monthly earnings for full and part-time workers in Germany fell by 2.2% on average in the second quarter in 2020 due to shorter work periods to contain the coronavirus crisis
  • The Ifo Institute in Munich said that the number of people in Germany on short-time work has fallen to 5.6 million
  • In the same quarter last year, hourly wages before tax deduction rose by 2.6% on average, according to the Office

Gross monthly earnings for full and part-time workers in Germany fell by 2.2% on average in the second quarter in 2020 due to shorter work periods to contain the coronavirus crisis, the Federal Statistics Office of Germany said on Tuesday.

So far the worst-hit sectors are tourism and hotels, along with Germany’s lucrative automobile sector.

“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 released a statement on Tuesday.

The German government headed by their Chancellor Angela Merkel took the decision to impose the short-time work program, under which employees temporarily work shorter hours which keeps a check on the spreading of the virus but they can also keep their jobs, with the state making amendments to cushion the loss of income for employees as much as the situation allows them to. It is also done in the vision that when the pandemic is over, the workforce will be available in full force to start working.

The Ifo Institute for Economic Research in Munich said last week that the number of people in Germany on short-time work has fallen to 5.6 million.

In the same quarter last year, hourly wages before tax deduction rose by 2.6% on average, according to the Office.

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