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Russia-Ukraine War: A Note on Short-Run Production and Labour Market Effects of the Energy Crisis

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Listed:
  • Hutter, Christian
  • Weber, Enzo

Abstract

We provide first causal evidence of effects of the energy crisis on Germany, representing a major European economy. Combining cost structure data, national accounts and administrative labour market data, we identify effects in a sectoral panel setting using sector-specific energy intensity as “bite” variable. The results show that via the channel of energy intensity, monthly production and real turnover decreased by 4.1 and 2.6 percent, respectively, after the onset of the Russian war against Ukraine. Instead of layoffs, firms safeguarded employment via short-time work with 24.1 percent additional applications. Vacancy posting was reduced by 10.2 percent.

Suggested Citation

  • Hutter, Christian & Weber, Enzo, 2023. "Russia-Ukraine War: A Note on Short-Run Production and Labour Market Effects of the Energy Crisis," MPRA Paper 116620, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116620
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    References listed on IDEAS

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    Cited by:

    1. Hornbach, Jens & Rammer, Christian, 2024. "Energy price shocks and short-time reactions of firms: The case of the german energy crisis in 2022," ZEW Discussion Papers 24-075, ZEW - Leibniz Centre for European Economic Research.
    2. Bożena Gajdzik & Radosław Wolniak & Rafał Nagaj & Brigita Žuromskaitė-Nagaj & Wieslaw Wes Grebski, 2024. "The Influence of the Global Energy Crisis on Energy Efficiency: A Comprehensive Analysis," Energies, MDPI, vol. 17(4), pages 1-51, February.
    3. Neuenkirch, Matthias & Repko, Maria & Weber, Enzo, 2025. "Hawks and Doves: Financial market perception of Western support for Ukraine," European Journal of Political Economy, Elsevier, vol. 89(C).
    4. Wang, Di & Li, Yiman & Zhang, Xianqi, 2025. "Energy international trade pattern under the background of the Russia-Ukraine conflict: A method based on complex network and evolutionary game theory," Energy Economics, Elsevier, vol. 149(C).
    5. Boonman, Hettie & Rodriguez, Mauricio, 2025. "Mitigating foreign fossil fuel shocks: The role of renewable energy and industrial electrification in The Netherlands," Economic Modelling, Elsevier, vol. 151(C).
    6. Krzysztof Zagrajek & Mariusz Kłos & Desire D. Rasolomampionona & Mirosław Lewandowski & Karol Pawlak, 2023. "The Novel Approach of Using Electric Vehicles as a Resource to Mitigate the Negative Effects of Power Rationing on Non-Residential Buildings," Energies, MDPI, vol. 17(1), pages 1-36, December.

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    Keywords

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    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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