Germany is expected to extend its furlough scheme to two years' duration, The Guardian reports, providing unemployment benefit to those relegated to part-time work beyond the current one year currently provided for.
The extension to the program is estimated to cost around $12 billion.
Germany's GDP dropped by 10% in the second quarter of 2020, but unemployment is only 6.3%, just 1.3% more than the same period last year. The government attributes this success in part to the furlough program, which encourages companies to continue to employ their workers on reduced hours rather than dismiss them.
Companies can apply for the furlough program if at least 10% of the workforce has had its hours of employment cut by over 10%. After four months on the scheme, workers are entitled to around 70% of their lost earnings, and this rises to around 80% after seven months if their working hours have dropped by over 50%.