Money Ifo Institute: 7.3 million employees affected by short-time work in May
Lufthansa subsidiary AUA approves austerity package - short-time work and cut wages
Vienna, May 20 (Reuters) - The Lufthansa subsidiary Austrian Airlines (AUA), which is struggling for state aid, wants to cut costs by a fifth and has decided to cut costs for its employees. In order to ensure the economic survival of the airline, which was badly shaken by the corona pandemic, the short-time work for the workforce is to be extended until 2022, AUA said on Wednesday after a meeting of the supervisory board.
In the wake of the Corona crisis, 7.3 million employees in Germany were on short-time work in May, according to calculations by the Munich Ifo Institute. "This number has never been so high," said Ifo labor market expert Sebastian Link on Tuesday. "In the financial crisis, short-time working peaked in May 2009 at just under 1.5 million people."
The numbers are based on economic surveys by the Ifo Institute, which asked for the first time the proportion of short-time workers in companies in May. According to the economic researchers, around 10.1 million workers were registered for short-time work with the Federal Employment Agency by the end of April. Of these, 71.6 percent were actually sent on short-time work, the Ifo Institute explained.
Half of Facebook workforce could remote work permanently, with some facing pay cuts
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According to the economists' estimates, 2.4 million people were on short-time work in so-called business-related services, for example in the areas of transport and storage or the hospitality industry - that is 24.5 percent of the total of around 9.9 million people. who are employed there subject to social security contributions.
According to the Ifo Institute, 2.2 million people, or 31 percent of all employees, were in short-time work in industry; in retail 1.3 million people or 29.7 percent.
According to the economic researchers, the number of short-time workers in civil engineering was particularly low with 22,000 people - a share of 4.1 percent of all employees subject to social security there. In March and April, the Federal Employment Agency (BA) reported short-time work on the construction site for around 163,000 employees.
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Another 260 have started serving again.THEN, the guys at McDonald's confirmed that 15 branches would re-open on 13 May for deliveries and takeaways, and only a limited menu would be on offer.
For the other economic sectors, which include, for example, the areas of agriculture and forestry, but also education and teaching, health and social services or art, entertainment and recreation, and which are not covered by the Ifo business survey, economic researchers appreciate short-time working to just under 1.3 million people. This is around 11 percent of the 11.4 million employees in this area who are subject to social security contributions.
In contrast to the financial crisis, when over 80 percent of short-time workers were employed in industry, short-time work was "used across almost all branches of the economy in the corona crisis", the Ifo Institute explained.
BA boss Detlef Scheele had recently expressed the assessment that the cost of the increased short-time work could be more than 30 billion euros at the end of the year. The federal government should then help out, said Scheele. Before the pandemic broke out, the Federal Agency's reserves had grown to EUR 26 billion.
UBS dealers to return to New York offices in late June
(Bloomberg) - UBS Group AG has been reportedly working on plans to let its dealers and other risk-related employees return to the New York offices this month. Other banks are slowly allowing key personnel to return to the pandemic. A limited number of employees in positions involving aspects of risk management may - but do not have to - return to the bank's skyscrapers in the financial metropolis, said a person familiar with the matter.
jm / muk
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After the corona crisis: Short-time workers face additional tax payments .
© Provided by WUNDERWEIB Those receiving short-time benefits could face additional tax payments. In the corona crisis, more and more companies are applying for short-time work. However, a nasty surprise could wait for next year. Never before have so many companies in Germany reported short-time work as this year because the economy is extremely suffering from the corona crisis. According to the Ifo Institute, the number of short-time workers in Germany rose to 7.3 million in May - far more than