Summary

The State Secretariat for Economic Affairs (SECO) commissioned a study on the effectiveness of short-time work during the second wave of the corona pandemic. The investigation shows that short-time work successfully prevented job losses and unemployment. Employees in companies with approved short-time work arrangements recorded lower income losses than workers without this protection. Short-time work recipients reduced their consumption less drastically than persons who lost their jobs. The study was published on June 23, 2026.

Persons

  • SECO (State Secretariat for Economic Affairs; Commissioning Agency)

Topics

  • Short-time work
  • Corona pandemic
  • Labor market policy
  • Income security
  • Economic crisis

Clarus Lead

The study provides empirical evidence for the effectiveness of a central crisis protection mechanism: short-time work proved to be an instrument for stabilizing earned income and employment during massive economic shocks. These findings are politically relevant for future crisis scenarios and the evaluation of labor market policy as a preventive strategy. However, the results also reveal limitations: compared to previous crises, cost-effectiveness was lower because some jobs were supported that were subsequently classified as not at risk.

Detailed Summary

The SECO study specifically analyzes the second wave of the corona pandemic and documents differential outcomes between three groups: employees in companies with approved short-time work, short-time work recipients, and persons who lost their jobs. The comparison of income dynamics shows that short-time work functioned as an income buffer – recipients recorded measurably lower losses than the unemployed. In parallel, the consumption propensity of short-time workers remained more stable, an indicator of psychological and financial security.

A critical finding concerns cost efficiency in historical comparison. While short-time work was deployed more selectively in earlier recessions, the pandemic led to broader use – with the result that some supported jobs could not be classified ex post as acutely at risk. This suggests an overcompensation that, while socially stabilizing, was fiscally less efficient than more precise targeting scenarios.

Key Findings

  • Short-time work demonstrably prevented job losses and reduced unemployment during the second wave of the corona pandemic
  • Income stabilization through short-time work was measurable: recipients had lower income losses than the unemployed
  • Consumption behavior of short-time workers remained more stable than among persons without employment
  • Cost efficiency was lower than in previous crises due to broader application to some jobs that were not at risk

Critical Questions

  1. Data Quality and Control Groups: How was causality between short-time work assignment and income stabilization isolated? Were selection effects (e.g., company size, sector) adequately controlled?

  2. Retrospective Assessment of "Non-Risk": According to which criteria was it decided ex post that some supported jobs were not actually at risk? How robust is this classification?

  3. Consumption Behavior as Proxy: To what extent is reduced consumption among short-time workers an indicator of welfare gains, rather than simply uncertainty and savings behavior?

  4. Long-Term Effects: Does the study cover only the pandemic phase, or were employment stability and income dynamics measured after return to normal capacity?

  5. Sectoral Differences: Does the effectiveness of short-time work vary systematically between sectors (e.g., tourism vs. industry)? Are the average results representative?

  6. Fiscal Opportunity Costs: Which alternative interventions (direct subsidies, unemployment insurance, retraining) could have achieved higher effectiveness with the same resources?

References

Primary Source: Short-time work stabilized earned income during the corona pandemic – State Secretariat for Economic Affairs (SECO) https://www.news.admin.ch/de/newnsb/aJ1jxMeNdShaBBOKda8Vb

Place of Publication: Die Volkswirtschaft – https://dievolkswirtschaft.ch/de/2026/06/kurzarbeit-stabilisiert-erwerbseinkommen-waehrend-der-coronapandemie/

Verification Status: ✓ June 23, 2026

This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact-Checking: June 23, 2026