Kurzarbeit is the German name for a program of state wage subsidies in which private-sector employees agree to or are forced to accept a reduction in working hours and pay, with public subsidies making up for all or part of the lost wages.[1]
Several Central European countries use such subsidies to limit the impact on the economy as a whole or a particular sector from short-term threats such as a recession, pandemic, or natural disaster. The idea is to temporarily subsidize companies to avoid layoffs or bankruptcies during a temporary external disruption. Most notably, such subsidy programs were used to offset the effects of the COVID-19 pandemic and recession starting in 2020.