Germany Extends Short-Time Work Benefits to Support Economy

The federal government has approved a 24-month extension of short-time work allowances to protect jobs and stabilize businesses facing economic challenges.

The German government has extended the maximum duration for short-time work benefits (Kurzarbeitergeld) to 24 months, effective until December 31, 2025.
The decision aims to provide businesses with greater planning security and prevent layoffs during ongoing economic difficulties, particularly in export-driven industries.
Short-time work allows companies to temporarily reduce employee hours, with partial wage compensation provided by the Federal Employment Agency.
Recent data shows a sharp rise in the use of short-time work, with 268,000 workers affected in September 2024, a 76% increase compared to the previous year.
Industries most impacted include manufacturing, particularly machinery, metal products, electronics, and automotive sectors, where over 143,000 workers were on short-time work in August 2024.