Will working time have to increase after the coronavirus crisis?
Business leaders have called for an increase in working time (weekly or annual hours ) after the crisis. Their suggestion met with an uproar, but it is important to consider the issue : Like after all recessions, as long as unemployment is high, working time should not be increased, as this would slow the decline in unemployment; But the recession caused by coronavirus has a very specific characteristic: it results from the fall in production due to the fact that many workers cannot work, and not from a fall in demand. The fall in consumption, combined with the fall in production, means that there are significant involuntary or forced savings (incomes, which are being sustained by fiscal deficits, cannot be spent). If after the crisis, these forced savings accumulated during the crisis are spent, production will have to exceed potential production, in which case an increase in working time will be necessary once unemployment has been brought back down.