Short-time Work in Germany and Austria

In response to the international financial and economic crisis raging in 2008 and 2009, the regulations governing cyclical short-time work were adapted in both Germany and Austria, facilitating access to the scheme and making it more attractive in financial terms. In the first half of 2009 both countries registered a massive surge in the number of people on short-time work schedules, greater in Germany than in Austria. The incentive mechanisms implemented in both countries to encourage training during short-time work schemes, however, were little used in either country. The report discusses possible causes for the difference in the use of short-time work and skilling schemes during short-time work spells, focusing on the formal and financial frameworks.