Low use of shortened work hours points to mild German recession – Ifo
© Reuters. FILE PHOTO: Cars make their way past the Victory Column shows a reduced lighting to save energy due to Russia’s invasion of Ukraine in Berlin, Germany August 6, 2022. REUTERS/Lisi Niesner/File Photo
BERLIN (Reuters) – Low take up of a government-backed ‘Kurzarbeit’ shortened hours facility points to a “very mild” recession in Germany this winter, the Ifo economic institute said on Wednesday.
In December, the number of workers on shortened hours eased to 186,000 from a seasonally adjusted 188,000 in November, Ifo said, citing estimates it based on data from the Federal Employment Agency.
“The fact that short-time work remains at a low level seems to indicate that the expected winter recession will be very mild,” Ifo researcher Sebastian Link said in a statement.