German furlough scheme back on rise, Berlin pushes for remote working. (picture alliance / dpa)
The number of companies signing employees up for Germany's state-funded furlough scheme rose in November for the first time in months, according to a study released on Monday.
The ifo research institute in Munich found that 28 percent of companies were making use of the programme, known as short-time work, which covers workers' wages during the economic slowdown sparked by the coronavirus pandemic.
This was up from 24.8 percent in October, the ifo said, citing its own surveys.
Germany returned to a partial lockdown in early November, closing bars and restaurants, banning tourism, and reintroducing strict limits on socializing.
The ifo recorded a notable rise in furloughed workers in hotels, where the proportion of businesses using the furlough scheme surged from 62.9 to 91 percent in November. In hospitality, the figure jumped from 53.4 to 71.7 percent.
Short-time work rose across almost all major economic sectors, the ifo said in a statement.
Among service providers, the proportion of companies signed up for the programme grew from 24 to 30.6 percent; in trade, from 18.8 to 20.7 percent, and in construction from 7.4 to 9.0 percent, according to the ifo's findings, based on responses from around 7,000 companies.
Manufacturing saw a slight decline, from 31.9 to 30.5 percent.
Certain branches bucked the trend, such as the automotive industry, where 36.7 percent of companies were using short-time work, as opposed to 50 percent in October.
Declines were also reported in the publishing industry and manufacturing of electrical equipment.
Short-time work was revived in Germany at the start of the pandemic in March in a bid to stave off mass insolvencies, after having made its debut during the financial crash over a decade ago.
In August, Chancellor Angela Merkel's government agreed to extend it until the end of next year.
Some 18 billion euros have already been spent on the scheme, Labour Minister Hubertus Heil said earlier this month.
Heil is also seeking to extend working from home beyond the pandemic.
On Monday, sources from the governing coalition said the minister's legislative bill would give workers the right to request the option of regularly working remotely. The employer would have to grant this or provide a written reason within two months on why this would not be allowed.
The government is also reported to be considering tax breaks for people who work from home.
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