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Job-retention schemes and labour market adaptivity in the context of the Coronavirus crisis

In the wake of the Covid 19 pandemic, numerous countries have enacted measures to strengthen labour markets (e.g. short-time allowances). This Policy Briefing examined the scope and impact of these and similar measures in Eastern European transition countries, with particular reference to the example of Ukraine.

The briefing summarises the results of a corresponding study: Overall, innovative labour market instruments, such as short-time allowances, were little or not used at all. This was mainly due to rigid labour regulations, which still have their origins in the Soviet era, as well as an underdeveloped social system. This left dismissal as the most frequently used instrument. In view of the high economic and social costs, countries like Ukraine should think about expanding short-time work schemes as a flexible instrument of labour market policy management.

Policy Briefing