Research Report Short-Time Compensation as a Policy to Stabilize Employment
Wayne Vroman, Vera Brusentsev
Display Date
Download Report
(102.1 KB)

Short time compensation (STC or work sharing) is a labor adjustment measure designed to reduce or eliminate reliance on layoffs when firms need to reduce hours worked. It spreads the reduction in hours among a wide pool of workers and provides partial unemployment compensation (UC) for the reduced hours. This paper examines STC with attention to experiences in Canada and Germany as well as the United States. It also suggests ways to increase STC use in the United States.
Tags Workplace and industry studies Unemployment and unemployment insurance