Series

March 2020: The coronavirus pandemic is shaking the global economy. Cross-country supply chains are breaking down within a matter of time, the worldwide demand for goods and services is plummeting, stock markets are crashing. In Europe, one country after the other is closing its borders. The consequences cut to the quick not least the German export industry – including the domestic automotive industry which is shutting down production completely. But unlike in the financial and economic crisis of 2008/2009, this crisis also hits the domestic service sector with full force: As a consequence of the politically decreed shut down, many shops must close, unless they provide basic consumer goods and services. Many are threatened by insolvency. Germany and the global economy are plunging into a deep recession. It is, however, still not clear how severe this recession will be and how long it will last. Politics, on the other hand, is trying to put up some resistance. The German government is launching giant aid packages. For instance, it is granting massive financial support to threatened companies and is paying short-time allowance of an unprecedented scale. At the same time, however, the consequences for the labour market are obvious – an immense challenge also for the IAB, which is currently confronted with many questions that are essential for the future: How robust will the labour market prove to be? Are we threatened with mass redundancies? Which sectors are particularly affected? How effective are the political measures? What lessons can be learned from the coronavirus crisis for economy and labour market? With this series, the IAB will try to provide some answers.

The Ukraine war has shaken international public opinion and brought immeasurable suffering to the people of Ukraine. The international community reacted to the Russian aggression with the toughest sanctions. The economic distortions resulting from the war itself, as well as from sanctions, are dramatic and are not limited to only Ukraine and Russia. In addition to the loss of the Russian export market, high prices for raw materials and energy, and the threat of supply-bottlenecks are factors which could severely affect the economies of many other countries. Uncertainty about future developments is also having a negative impact on the economic climate. All of this will have an impact on the labour market. It is, however, unclear how strong the impact will be. Here, the IAB has a role in assessing the possible effects of the Ukraine crisis and evaluating those political measures which are intended to stabilise the German economy and labour market during the crisis. The war has also triggered a massive movement of refugees from Ukraine. Thus, a special focus of the IAB also lies in analysing its consequences for migration and integration – in particular in Germany. In this series, the IAB presents its relevant expertise on the effects of the war in Ukraine and discusses options for action in relation to labour-market and economic policy.