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Nearly 650,000 companies in Germany want partial unemployment

Nearly 650,000 German companies have filed for partial unemployment by April 6, the Employment Agency announced today, quoted by the French Press, as quoted by BTA.
The number of companies is growing significantly: on March 27, partial unemployment applications were 470,000 companies, meaning they were up 40 percent in less than a week.

At this stage, it is not possible to specify the number of employees affected because employers have not yet provided the final lists.

The German government expects more than 2 million partially unemployed, and according to the Employment Agency, it is a much larger number of partially unemployed than during the 2009 crisis.

Currently applications for partial unemployment come from all sectors, especially from trade and restaurant services.

Germany's partial unemployment provision stipulates that the state translate from 60 to 67 percent of employees' salaries. Berlin used this approach during the financial crisis and so avoided a wave of cuts.

The provision was also resorted to by the largest companies: Volkswagen included 80,000 employees in this scheme and Lufthansa, which operates a minimum part of its flights, left 62,000 of its employees in Germany in partial unemployment.

Germany's economy will shrink by 9.8 per cent year-on-year in the second quarter of this year because of the coronavirus pandemic, a precedent in the country's recent history. This is what the general projections of the main economic institutes published yesterday show.