Germany has a system aimed at preventing mass layoffs. Under the Kurzarbeit program, which has existed for decades, the government helps pay workers when companies are under financial distress, and employees reduce their work week.
its number of unemployment claims recently enough for us to compare it to the huge U.S. surge, but they are likely to be way lower. That's because Germany is handling the same crisis differently. Germany has a system aimed at preventing mass layoffs. It's called, which translates to"short-time work." Under the program, when companies declare they're under financial distress, the government helps them pay their workers.
Using the short-time work program, which has existed for more than a century, Germans have weathered everything from world wars to financial crises."Unemployment did not rise in Germany after the 2008 financial crisis like it did in other advanced economies," says Anke Hassel, an economist at the Hertie School in Berlin."It was definitely due in large part to thesystem makes particular sense in Germany, which is dominated by skill-intensive manufacturing.
Bachmann believes this is a step in the right direction, but he questions why this is being administered through private banks, as opposed to directly from the government, and why it's limited to only small businesses. He thinks this will only slow down and reduce the benefits of the system. But it may be the start of a different way of thinking about how to weather an economic shock.
France Dernières Nouvelles, France Actualités
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