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Kurzarbeit: German minister plans to extend reduced working hours scheme

Germany's Labour Minister plans to push for an extension of the reduced working hours scheme - Kurzarbeit - until the end of 2021.

Published: 6 August 2021 09:47 CEST
Kurzarbeit: German minister plans to extend reduced working hours scheme
Lots of people were placed on the Kurzarbeit scheme when businesses had to shut during lockdowns, like this one in Munich. Photo: picture alliance/dpa | Sven Hoppe

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

At the start of the Covid crisis, the government made it easier for firms to apply for the benefits for staff. The scheme was set to expire on September 30th.

But Labour Minister Hubertus Heil, of the Social Democrats (SPD), said Friday he wants to extend it until the end of the year. The tool is crediting for helping to stave off mass job losses during the crisis. 

“Kurzarbeit was and is our stable bridge over a deep economic valley,” Heil told the Rheinische Post.

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Unemployment is declining, Heil said. “But in view of the fact that there are still economic disruptions in a number of industries, I think it makes sense to extend the existing regulations for Kurzarbeit until the end of the year as a precaution.”

At the weekend German Finance Minister and SPD candidate for chancellor Olaf Scholz expressed similar views to Heil.

Both the reduced hours working scheme, and economic aid for struggling companies, should be extended until the end of the year, he told the newspapers of the Funke-Mediengruppe.

READ ALSO: Working in Germany – a weekly roundup of the latest jobs news and talking points

However, some have questioned if the government needs to provide this support given the improving jobs situation. 

Extending access to Kurzarbeit would be “completely premature,” German economist Lars Feld told the Rheinische Post.

A company can register for Kurzarbeit if at least 10 percent of its employees are affected by the loss of work. Outside of crisis times, at least 30 percent of the workforce has to be affected to allow firms to apply. Temporary workers can also receive short-time benefits.

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

In 2020, 16 percent of the German workforce were on Kurzarbeit for a period of time as a result of the pandemic – that’s around 7.3 million people.

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

German firms like Lufthansa, Volkswagen and BMW are among the many firms to have used the scheme at the peak of the crisis.

In later lockdowns, many companies in the hospitality, leisure and culture industries applied for Kurzarbeit benefits for staff who were unable to work.

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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.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
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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