Präsentation von Alexander Hijzen im Rahmen des Webinars vom OECD Berlin Centre am 26. November 2020

1. Job retention schemes
during the COVID-19 lockdown and beyond
OECD Berlin Centre and IAB,
26 November 2020
Alexander Hijzen with Andrea Salvatori and Agnes Puymoyen
OECD - Directorate for Employment, Labour and Social Affairs,

2. © OECD |
Job retention (JR) schemes were key part of the initial
policy response
• JR schemes seek to preserve jobs at firms experiencing a temporary
reduction in business activity
• JR schemes can take different forms
– Short-time work or temporary layoff schemes
– Wage subsidy schemes
• Crucially, contract is maintained during programme participation
• Key challenge is to avoid subsidising jobs that do not need support or
that have become permanently unviable
2Job retention schemes during the COVID-19 lockdown and beyond

3. Governments
have invested
massively in job
retention schemes
to stem job losses

4. © OECD |
Many countries have adjusted existing job
retention schemes or adopted new ones
4Job retention schemes during the COVID-19 lockdown and beyond
0
5
10
15
20
25
All with a pre-existing
short-time work
scheme
Increased access and
coverage
Increased benefit
generosity
Increased access for
workers in
non-standard jobs
Number of
countries
A. Countries with pre-existing schemes
0
5
10
15
20
25
New short-time work
scheme
New wage subsidy
scheme
B. Countries with new schemes
Number of
countries

5. © OECD |
0
10
20
30
40
50
60
70
NZL FRA CHE ITA AUT PRT GBR DEU LUX NLD AUS BEL IRL CZE ESP CAN SWE DNK NOR FIN LVA USA
Share of employees (% )
Approved applications Actual use
The use of job retention schemes was
unprecedented

6. © OECD |
The use of job retention schemes was
widespread across sectors
0 50 100
Other sectors
Business-related
services
Trade
Construction
Manufacturing
% of total employees in STW
Take-up by industry in Germany
0 50 100
Other sectors
Business-related
services
Trade
Construction
Manufacturing
% of total employees in STW
Take-up by industry in France
COVID-19 crisis Global financial crisis

7. Job retention
schemes in the
confinement
phase of the
COVID-19 crisis

8. © OECD |
0
10
20
30
40
BEL FRA DEU ITA ESP CHE GBR PRT JPN DNK USA
(N/A)
CAN AUS NZL EST POL NLD
Short-time work schemes Wage subsidy schemes Hybrid
scheme
%
Average wage 67% of average wage
Job retention schemes allowed working time to
be reduced at zero or limited costs to firms
labour costs as a % of normal labour costs for 100% reduction in working time

9. © OECD |
0
20
40
60
80
100
ITA ESP FIN BEL JPN DEU* PRT FRA GBR CHE DNK AUS NZL POL EST CAN NLD
Short-time work schemes Wage subsidy schemes Hybrid
scheme
% gross wage
Job retention scheme Unemployment benefit
Job retention schemes tend to offer stronger
support than unemployment benefits
% of gross wage, at the average wage, for a 100% reduction in working time

10. Adapting job
retention schemes
to the post-
confinement
phase

11. © OECD |
Better target support to jobs that are viable
but at risk of being terminated (1)
• Job retention support should be time-limited
• Require firms to share in costs of hours not worked
• Differentiate support between sectors should not be
set in stone.
11Job retention schemes during the COVID-19 lockdown and beyond

12. © OECD |
Better target support to jobs that are viable but at
risk of being terminated (2)
• Align short-time work and unemployment benefits
• Provide support for job search and career guidance
• Promote training while on reduced working hours
12Job retention schemes during the COVID-19 lockdown and beyond

13. Job retention
support needs to
be timely, targeted
and temporary

14. © OECD |
JR support during the COVID-19 lockdown
and beyond
• JR support was timely, as reflected by unprecedented
take-up
• JR support should become more targeted as market
mechanisms gain importance
• JR support needs to remain temporary, raising the
importance of policies promoting access to jobs
14Job retention schemes during the COVID-19 lockdown and beyond

15. © OECD |
JR support during the COVID-19 lockdown
and beyond
• JR support was timely, as reflected by unprecedented
take-up
• JR support should become more targeted as market
mechanisms gain importance
• JR support needs to remain temporary, raising the
importance of policies promoting access to jobs
15Job retention schemes during the COVID-19 lockdown and beyond

16. @alexanderhijzen
alexander.hijzen@oecd.org
@OECD_Social
Policy Brief on Job Retention Schemes:
http://oe.cd/covid19briefjobretention