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Kurzarbeit: German partial unemployment ‘to exceed 2009 financial crisis level’

Almost 650,000 businesses had applied for Germany's reduced-hours work scheme by April 6th, official figures showed Thursday, with the government expecting uptake to exceed levels seen in the 2008-2009 financial crisis.

Kurzarbeit: German partial unemployment 'to exceed 2009 financial crisis level'
An application form for 'Kurzarbeit'. Photo: DPA

The latest figures released by Germany's federal labour agency (BA) mark a 40 percent rise in applications amid the coronavirus crisis, up from 470,000 on the last count a fortnight ago.

BA president Detlef Scheele said that it was impossible to say exactly how many individual employees would be placed on the scheme, but said it would be “signficantly” more than the peak of 1.4 million seen during the financial crisis.

The government itself expects uptake to be as high as 2.1 million people this time around.

Known as “Kurzarbeit”, the scheme is a crucial tool in Germany's plan to keep labour market structures intact as the economy grinds to a halt.

First tested in the financial crisis, the measure tops up from government coffers the pay of workers placed on shorter hours by their employer, preserving the contractual relationship for the time when activity rebounds.

Companies must apply for the aid to the local branch of the BA.

On Thursday, the BA said applications had come in from “all sectors”, but particularly from non-essential businesses and restaurants which have been forced to close during the crisis.

Germany has also banned public gatherings of more than two people and urged citizens to stay at home where possible.

READ ALSO: What's the latest on coronavirus in Germany and what do I need to know?

The government has relaxed the requirements for companies to qualify for the “Kurzarbeit” scheme in the face of the crisis, reducing the threshold for the proportion of workers who must be affected to 10 percent, from one-third previously.

Several of Germany's biggest companies have signed up including auto giant Volkswagen, which has placed 80,000 of its workers on the scheme.

The German economy, Europe's biggest, is expected to shrink by nearly 10 percent in the second quarter due to the fallout from COVID-19, leading research institutes warned Wednesday.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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