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According to a statement from the VAT on Wednesday, St. The Office responsible for Economic Affairs and Labor in the canton of St. Gallen has approved the extension of the measure for a further three months, until the end of November. This affects 650 employees at two VAT factories in The Hague.
Short-time working practice was implemented in mid-June this year. With the extension, VAT now responds to ever-tougher market conditions, especially in the field of semiconductor equipment.
This could secure jobs and retain well-educated employees, according to the company. This makes it possible to react quickly to the expected occupancy of demand next year.
VAT does not expect short working hours to have a negative impact on customers or product quality. A similar program was successfully implemented during the market crash in 2018 and 2019.
The current downturn is due to a sharp decline in spending by semiconductor customers. These are said to be lagging in various markets due to slowing consumer spending, persistently high interest rates and low economic growth. The trade restrictions imposed by the USA on China in the chip industry also negatively affect the demand for VAT-bearing products.
VAT expects demand to remain weak in the second half of 2023, according to the statement. However, the company expects a recovery next year, especially under the influence of trends towards digitalization and the transition to renewable energies.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
