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How 39 million Europeans kept their jobs after the work dried up
Key Excerpts from Article on Website of MSN News
Posted: May 11th, 2020
https://www.msn.com/en-us/money/markets/how-39-million-europ...
In Europe, nearly 39 million people are being paid by governments to work part time or not at all, a record level of support that will shape the region's ability to claw its way out of the deep recession triggered by the coronavirus. Like never before, European countries are relying on programs that encourage struggling companies to retain employees but reduce their working hours. The state then subsidizes a portion of their pay, in some countries paying as much as 80% of average wages. Unlike the system widely used in the United States, where employers lay off workers who then need to apply for government benefits, programs such as Germany's "Kurzarbeit," which translates to "short-time work," maintain the relationship between employers and their employees, helping work resume quickly once business picks back up. Kurzarbeit is credited with helping prevent mass layoffs in Germany following the 2008 global financial crisis. But present uptake is unprecedented. In Germany, as many as one in four employees may be on short-time work programs. In France and Italy, the number rises to as many as one in three workers or more. This could give Europe a leg up in its recovery, allowing economies in the region to restart quickly and efficiently as demand rebounds. A survey by the Ifo Institute in Germany this week found that 99% of restaurants and 97% of hotels in the country are making use of the Kurzarbeit program, as well as 94% of companies in the auto sector. The average across industries is 50%. [In contrast,] just 62,300 Americans received work-sharing benefits for the week ending April 11, according to the most recent data from the US Department of Labor.
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