"Prevent unemployment, make way for new hirings"

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A further increase in unemployment must be prevented by lowering the financial and legal barriers to new recruitment. This includes the temporary assumption of social contributions.

With regard to developments on the labour market, VDMA Executive Director Thilo Brodtmann explains:

"The Federal Government must prevent a further rise in unemployment quickly and unbureaucratically. To do so, above all, the financial and legal hurdles for new hirings must be lowered. For example, after a new hire the state should pay the employer's share of social security contributions for a few months for employees who were previously unemployed. In addition, the prohibition of pre-employment in the case of fixed-term contracts should be waived. This would make it much easier for companies to re-employ former employees.

"After a new hire, the state should pay the employer’s share of social security contributions for a few months for employees who were previously unemployed.”

Another suitable means of preventing further unemployment would be the extension – to 24 months - of the period for which short-term work benefits are paid. However, the extension will probably only be financeable if the government's increase in the short-time work allowance is limited for these cases."

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