Short-time work is a proven policy instrument for dealing with times of crisis, but not every economic uncertainty justifies short-time work.
The German economy faces multiple crises in 2026: geopolitical conflicts, disruptions to global supply chains, volatile energy prices, industry-specific declines in demand, and continued high interest rates leading to reluctance to invest. The factors currently causing significant planning uncertainty are manifold. Short-time work is a proven labour market policy instrument available for such situations. However, not every economic uncertainty justifies the introduction of short-time work. The following article explores the conditions under which current economic developments can provide a viable basis for its implementation.
