Are you Ready for Insta 75 Days Revision Plan (UPSC Prelims - 2020)?
Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. Amidst the all-round disruption caused to the economy by the COVID-19 outbreak, a concern across the world is the possibility of a loss of jobs, discuss the idea of ‘Kurzarbeit’ under such circumstances.(250 words)
Reference: Indian Express
Why this question:
Amid the all-round disruption caused to the economy by the novel coronavirus outbreak, a concern across the world is the possibility of loss of jobs.
Germany’s Kurzabeit is being mentioned time and again in this context. Also, the German cabinet is planning to extend the benefit of short-time work allowance by the first half of April through legislation. Thus the question.
Key demand of the question:
Explain the concept of Kurzabeit and its significance in the current times.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Briefly define – Kurzarbeit; it is German for “short-work”. The policy provides for a short-time work allowance, called kurzarbeitgeld, which partially compensates for lost earnings during uncertain economic situations.
Explain how it works – When companies face a loss of earnings due to unforeseen economic situations, they often need to cut back on their working hours or send some of their employees’ home.
The Kurzarbeit scheme aims to address workers who are impacted by loss of income due to shortened work hours during such times. They can apply for short-term work benefits under the scheme, with the government stepping in to pay employees a part of their lost income.
This helps the companies retain their employees instead of laying them off, and allows the latter to sustain themselves for a period of up to 12 months.
Conclude with benefits of such a system.