Germany's Economic Woes: The Impact of 'Work-Shy' Gen Z Sick Leave

Germany's economy has been grappling with a range of challenges, from falling exports to soaring energy prices, and its most important sectors are losing their competitive edge. While various factors contribute to these economic woes, some German bosses have pointed the finger at 'work-shy' Gen Z employees taking excessive sick leave. This article explores the relationship between Germany's sick leave policies, the behavior of younger workers, and the potential economic consequences.


Germany's social system and labor laws contribute to high sick leave rates among younger workers. The country's six-week full-pay sick leave policy, while intended to protect employees, may inadvertently encourage absenteeism. According to Techniker Krankenkasse, German workers averaged 19.4 sick days in 2023, nearly four times the UK rate. Employers, like Tesla, have resorted to home visits to investigate suspected abuse. However, German laws allow unannounced visits, unlike the UK's patient confidentiality rules. This policy may foster a culture of exploitation, with employees taking advantage of the system.


The perception of 'work-shy' Gen Z misusing sick leave in Germany may be influenced by generational differences in work-life balance expectations. According to a 2023 study by StepStone, 72% of Gen Z employees prioritize work-life balance over salary, compared to 53% of Baby Boomers. This shift in priorities may lead to different interpretations of sick leave usage. Additionally, Gen Z has grown up with more flexible work arrangements, potentially leading to a higher expectation of work-life balance and a lower tolerance for poor working conditions.

However, it is essential to note that high sick leave rates are not solely due to younger workers' attitudes. Long-term diagnoses, such as mental illnesses, are a significant factor in German sick leave rates. Albrecht Wehner, an expert in health management at TK, emphasizes that while colds are usually short-lived, mental health issues can lead to more days off. This suggests that the mental health and well-being of younger German workers may contribute to their higher sick leave rates.

High sick leave rates among younger workers have significant economic consequences for German businesses and the overall economy. According to Techniker Krankenkasse, the largest health insurance fund in Germany, workers missed an average of 19.4 days of work due to illness in 2023, with Gen Z employees being particularly affected. This high absenteeism rate, nearly four times that of the UK, cost Germany's economy approximately €26 billion in 2023. The German Association of Research-Based Pharmaceutical Companies (VFA) estimates that without the above-average number of sick days, Germany's economy would have expanded by 0.5% instead of contracting by 0.3% in 2023. This suggests that high sick leave rates among younger workers contribute to Germany's economic woes, including falling exports, soaring energy prices, and weakening competitiveness in key sectors.


Reforming Germany's sick leave policies could have significant economic and social consequences. Balanced reforms, focusing on improving work conditions and encouraging employee engagement, could boost productivity and worker satisfaction, while also reducing inequality. However, strict reforms may lead to social backlash, as seen in Tesla's controversial home visits to sick employees. A more constructive approach might involve occupational health interventions to support employees' return to work, as practiced in the UK.

In conclusion, while 'work-shy' Gen Z employees may contribute to Germany's economic woes through high sick leave rates, the underlying issues are more complex. Addressing work environment issues, mental health concerns, and generational differences in work-life balance expectations could significantly boost economic growth and improve the overall well-being of German workers. A balanced approach to reforming Germany's sick leave policies is essential to navigate these challenges effectively.