voxeu.org (07.04.2020) Due to the global spread of COVID-19, Austria, like many other countries, is facing a massive increase in unemployment. To mitigate the skyrocketing number of unemployed persons, social partners have developed a new model of subsidised short-time work that could become an international role model. The Austrian model allows a temporary reduction in working hours up to 90% while maintaining the employment relationship and granting almost full public wage compensation. This measure can help to bridge the economic outfall as it helps to stabilise demand and fosters a fast return to pre-crisis economic activity.
Due to the global spread of COVID-19, Austria, like many other countries, is facing a massive increase in unemployment. To mitigate the skyrocketing number of unemployed persons, social partners have developed a new model of subsidised short-time work that could become an international role model. The Austrian model allows a temporary reduction in working hours up to 90% while maintaining the employment relationship and granting almost full public wage compensation. This measure can help to bridge the economic outfall as it helps to stabilise demand and fosters a fast return to pre-crisis economic activity.