Consequences of the energy crisis: more short-time work in industry

The number of short-time workers in Germany has risen again since the summer. Especially in energy-intensive industries, companies reduce working hours to throttle production and save money.

The energy-intensive companies in Germany have to save and are therefore sending more employees on short-time work again. According to estimates by the ifo Institute, the number of short-time workers in Germany has risen from 76,000 to 187,000 since the summer of this year, as the Munich researchers announced. It is based on ifo surveys and figures from the Federal Employment Agency (BA).

The effects of the massive rise in gas and electricity prices are particularly evident in industrial companies. There, the number of short-time workers increased from 59,000 to 151,000 employees. In the auto industry alone, 33,400 people were on short-time work in November, and 21,200 in the chemical industry.

Number well below the previous year’s level

“In particular, the energy-intensive industries and the automotive industry are increasingly resorting to short-time work. This is in line with the recent weakening of production in these sectors,” explained ifo expert Sebastian Link. Compared to the last Corona winter, the “level of short-time work is still very low,” says Link.

In November 2021, the total number was 750,000 short-time workers. At that time, the service sector was particularly affected. This winter, due to the relaxed corona measures, only a few employees in service companies are on short-time work.