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Jobs: Germany poised to extend Kurzarbeit scheme

Germany looks set to extend the reduced working hours (Kurzarbeit) scheme put in place during the coronavirus crisis.

Jobs: Germany poised to extend Kurzarbeit scheme
Photo: DPA

There is growing support in the German government for an extension of the programme, which allows firms to reduce the working hours of staff to cut costs and stay afloat during tough times.

At the weekend Finance Minister and Vice Chancellor Olaf Scholz of the centre-left Social Democrats (SPD) spoke out in favour of extending the period during which reduced working hours benefits can be paid out until 2022.

“The corona crisis will not suddenly disappear in the next few weeks,” he said, adding that businesses and employees needed “a clear signal from the government” that showed they would be helped throughout the crisis.

On Monday Angela Merkel's spokesperson Steffen Seibert said that the Chancellor, of the conservative Christian Democrats (CDU), was “positively” inclined towards the suggestion to extend the scheme, which would cost around €10 billion.

The programme is currently limited to claims lasting a maximum of 12 months.

Some seven million people in Germany have been put on Kurzarbeit since the scheme was launched in March.

Since the coronavirus crisis started, the government has allowed companies to furlough their workers and let the state pay a percentage of their lost wages.

This policy is widely seen as having saved millions of jobs, preventing a steep rise in unemployment. It aims to provide firms with the help they need to get to the other side of the economic crisis.

However, it does have an impact on the amount of tax paid by those who receive the benefit.

READ ALSO: Why people on Kurzarbeit in Germany need to prepare for a tax surprise

The coalition government increased payments during the coronavirus crisis. After four months on the scheme, recipients receive about 70 percent of lost earnings, and they get about 80 percent after seven months if they have lost more than 50 percent of their working hours.

Markus Söder, leader of the CDU's Bavarian sister party the CSU, backs an extension but warned that more support was needed for firms.

“The Kurzarbeit allowance is helpful as an instrument,” the Bavarian state premier said.”But that alone is not enough. We have to reconsider how we support industries in difficulty such as the automotive, aerospace and mechanical engineering sectors.”

A formal decision on an extension is expected at the next coalition committee scheduled for August 25th.

READ ALSO: German firms apply for Kurzarbeit for nearly 12 million workers during coronavirus pandemic

Vocabulary

Extension – (die)  Verlängerung

Redundancies/layoffs – (die) Entlassungen

To grow – wachsen

Measure – (die) Maßnahme

We're aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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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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