The economic recession: How can the impact on the labour market be cushioned?

What measures should be used to cushion the effects of the recession on the labour market? Olaf Scholz, Federal Minister for Labour and Social Affairs, explains the policies of the government, in particular the employment of short-time work subsidies, and underlines the relevance of the "social partnership": "The joint efforts of the federal government, employers and trade unions is effective and is preventing worse things from happening. This demonstrates that with this 'social partnership' we can overcome the crisis and refute the dire prognoses." Johann Eekhoff, University of Cologne, warns against using the crisis to induce employees, with public funds, to take early retirement, for example with publicly subsidised part-time work for people approaching retirement or early retirement without reduction in retirement benefits. Minimum wages and wage subsidies are also not effective instruments for cushioning the negative effects of the crisis on the labour market. Instead, the tax system should be improved and working-time regulations be loosened. Axel Deeke, Institute for Labour Market and Occupational Research, Nuremberg, sees the short-time working scheme as the reason why the feared effects of the crisis on the labour market have not yet occurred. In the opinion of Wilhelm Adamy, DGB Executive Board member, the short-time working scheme has indeed been very successful in the short term, but it can only postpone the loss of jobs caused by the crisis and not prevent this loss completely. The time gained from this scheme should be used to safeguard jobs, for example by protecting endangered jobs, enhancing the level of qualifications, reducing social inequalities and appropriate earnings protection. Stefan Sell, Koblenz University of Applied Science, sees the present stabilisation of the functionalities in unemployment insurance, for example via a temporary prolongation of the unemployment compensation, as only a short-term strategy. In the medium and long term, we must reform the existing social insurance systems in cases of unemployment by developing an "employment insurance" system. Heike Bruch and David Maus, University of St. Gallen, present their concept of "problem-oriented management" whose application in times of crisis can help to mobilise employees.