Are Germans Less Productive Than the Rest of the EU? Unraveling the Working Hours Debate
Are Germans less industrious compared to other EU member states? - Are the Germans less industrious compared to the other EU nations?
By Marlen Schoenberger
Germany's working hours have garnered controversy, ignited by Chancellor Friedrich Merz's speech at the CDU Economic Council. He maintained that a four-day week and work-life balance would harm the country's prosperity, insinuating that the Germans are too lazy. Despite Merz's softened stance, the question persists: Is this claim grounded in truth?
A study conducted by the Institute of the German Economy (IW) provides some insight. Comparing working hours across European nations, the IW reports that in most countries, more hours are worked per working-age citizen than in Germany. These findings, based on data from the Organisation for Economic Co-operation and Development (OECD), should be taken with a grain of salt, as methods for data collection vary significantly, making the numbers only partially compatible.
Productivity: More Than Just Time Spent
However, working hours alone paint an incomplete picture. To gain a comprehensive understanding, productivity — the value created per hour worked— must be taken into account. In this regard, Germany performs relatively well.
Data from the IW is from 2023 (except Belgium 2022) and GDP figures from 2024.
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Visuals to Illuminate the Working Time Landscape
- Working Time Model
- OECD
- Friedrich Merz
- Europe
A Closer Look at Germany's Productivity
Taking a holistic approach, it's evident that while Germany boasts high productivity per hour, the country struggles with overall productivity growth. Factors such as escalating labor costs and limited economic adaptability hinder its progress in new markets and industries [5]. Moreover, working fewer hours compared to numerous other nations can negatively impact overall productivity, as total output over an extended period may be lower in countries with longer working hours.
Comparing Germany to Other EU Nations
When contrasting Germany with influential European economies, such as France and Spain, its productivity struggles become more prominent, as unit labor costs in these countries have remained more competitive [5]. Furthermore, the decline in Germany's manufacturing sector, a major pillar of the economy, adds to the complexities faced in its productivity landscape compared to other EU countries [5].
In summary, although Germany has a high productivity per hour, its overall productivity growth falters, primarily due to working fewer hours and structural challenges within the economy. As a result, Germany struggles to surpass other EU countries in terms of overall productivity.
- The European Parliament, the Council, and the Commission might be interested in the findings of the study conducted by the Institute of the German Economy, as it reveals that despite working fewer hours than most EU nations, Germany's high productivity per hour could indicate a more comprehensive issue with overall productivity growth.
- To improve workplace-wellness and health-and-wellness, and potentially boost overall productivity, the European Parliament, the Council, and the Commission could consider implementing health and lifestyle policies that encourage a work-life balance, such as the adoption of shorter working weeks, as Germany's fewer working hours compared to other EU countries could negatively impact overall productivity over an extended period.
