SHORT-TIME work schemes (STW) led to an “important impact on preserving jobs during the downturn,” according to the organisation representing the world’s most developed nations.
A new working paper on the impact of STWs during the financial crisis by the OECD finds Germany and Japan benefited most from implementing schemes, saving a combined 650,000 jobs.
In Germany, 235,000 jobs, the equivalent to 0.8 per cent of the country’s workforce was saved, whilst 415,000 jobs were saved in Japan, or 0.9 per cent of its workforce.
However, the benefits were limited to those workers on permanent contracts, which had the adverse effect of increasing the split in the job market between people with regular jobs and those with temporary and part-time jobs.
Twenty-two countries introduced or adjusted STW schemes during the crisis.