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Kurzarbeit: Germany extends reduced hours work scheme

A German scheme that tops up pay for workers who lost work hours because of the coronavirus pandemic has been extended by another year to stave off mass job losses.

Published: 26 August 2020 09:30 CEST

Kurzarbeit: Germany extends reduced hours work scheme

A job centre in Hanover. Photo: DPA

Chancellor Angela Merkel's ruling coalition of conservatives and centre-left Social Democrats agreed on Tuesday to allow the programme to run for 24 months for any firm that applies by the end of the year.

It also resolved to extend financial assistance to small businesses until the end of the year and relax insolvency laws in an effort to avoid cascading bankruptcies.

The shorter-hours programme, known as Kurzarbeit, sees the German government cover around two-thirds of workers' wages when employers slash their hours to save costs.

READ ALSO: Germany poised to extend Kurzarbeit scheme

The scheme was widely used during the 2008-09 financial crisis and credited with saving tens of thousands of jobs.

The programme is one of the main tools used by Berlin to shield Europe's top economy from the pandemic-induced downturn, accounting for a key part of the government's trillion-euro ($1.1 trillion) coronavirus support package.

At the height of the coronavirus lockdowns in April, some 6.8 million Germans received money through the scheme, the federal employment agency said.

To ease access to the programme, ministers reduced the requirements that companies need to meet in order to qualify for assistance.

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

German giants like Lufthansa, Volkswagen and BMW are among the many firms to have tapped the scheme.

Before the pandemic, German unemployment hovered at a record-low level of around five percent. It has since risen to 6.4 percent.

Other European economies, including France and Britain, introduced similar short-time working programmes to battle the economic consequences of the pandemic.

The scheme does not come cheap. When German economic output contracted five percent in 2009, an average of 1.1 million workers were placed on the programme, costing Berlin around €10 billion.

After maintaining a balanced budget for years, the German government has said it plans to borrow around €218 billion this year to help pay for its pandemic response.

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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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