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Coronavirus hits Germans' wallets as monthly earnings decline

August 18, 2020


Abstract : Gross monthly earnings took a 2.2-per-cent hit in Germany in the second quarter of 2020, according to government data, as the fallout of the coronavirus pandemic puts a strain on businesses and jobs.

Gross monthly earnings took a 2.2-percent hit in Germany in the second quarter of 2020, according to government data, as the fallout of the coronavirus pandemic puts a strain on businesses and jobs.

The year-on-year fall, reported on Tuesday by the Federal Statistical Office (Destatis), was attributed to struggling businesses' reliance on a government furlough scheme and the reduced working hours associated with that.

Paid weekly working hours declined by an average of 4.7 percent, a statement from Destatis said.

On the other hand, gross hourly earnings were not affected by short-time work, as the government scheme is known. The agency said hourly pay actually increased by 2.6 percent compared to the same quarter last year.

The industries hardest hit by the slump in monthly wages were accommodation with an 18-percent fall, vehicle manufacturing at 17 percent and travel agents at 15 percent.

This corresponded with a dramatic fall in paid working hours in those key sectors.

Destatis said that workers in restaurants, air travel and retail have also seen a significant drop in monthly wages.

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Keyword: German economy

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