Explaining Kurzarbeit, or Saving Jobs the German Way

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The state-funded German safety net known as Kurzarbeit, which keeps salaries flowing to employees even when their work has dried up, is getting renewed attention as governments around the world grapple with the economic fallout of the coronavirus pandemic. Countries from France to Italy and the U.K. have rolled out similar schemes, and have been discussing whether to prolong them. Germany’s relatively contained rise in unemployment stands in stark contrast to the U.S. labor market experience, underlining the difference of their approaches.