Germany's Productivity Paradox: Can Longer Hours Fix a Burnout-Driven Economy?

Germany is facing mounting pressure to address its labor productivity challenges, with government officials and analysts calling for a more efficient and longer work ethic to drive economic growth. In 2024, the average workweek in Germany was 33.9 hours, lower than the EU average of 36 hours and behind countries like Greece, Poland, and the Netherlands, where the average workweek is around 39 hours or less [1]. Over the past 15 years, German labor productivity per hour has remained largely stagnant, despite the country being a major industrial and economic power in Europe [1].

The Organisation for Economic Co-operation and Development (OECD) reports that Germans work the least among its member countries, logging 1,335 hours per person annually in 2023—well below the U.S. figure of 1,805 hours [1]. Chancellor Friedrich Merz has responded to these trends by urging Germans to work longer and more efficiently, stating that "we will not be able to maintain our prosperity" with a focus on "work-life balance" and shorter workweeks [1]. His remarks reflect a broader concern: with 11% of the workforce expected to retire in the next decade and productivity per hour declining by 1.7% in the second quarter of 2024 compared to the first quarter of 2023 [1], Germany faces a looming demographic and economic challenge.

The government has floated several potential solutions. One is to abolish the legal limit on daily working hours—currently capped at eight per day—while maintaining the 40-hour workweek [1]. Others have proposed tax incentives to encourage more people to enter or remain in the workforce, including allowing retirees over the age of 67 to work up to €2,000 per month tax-free [1]. However, these discussions occur amid rising sick leave rates and a growing trend of early retirement due to burnout and exhaustion. In 2023, the average German worker took 15.1 days of sick leave, the highest recorded figure [1]. France has also seen increasing sick leave costs, with a 8.5% rise in the first half of 2024 [1].

Compounding these issues is the recent national experiment with a four-day workweek, which yielded mixed results. A six-month trial involving 45 organizations found that 73% of participating firms wanted to continue the model, citing efficiency gains, reduced stress levels, and improved work-life balance [2]. The initiative followed the 100-80-100 principle—100% pay for 80% of time, with the goal of 100% output—and data from wearable devices showed participants experienced fewer stress minutes and more sleep [2]. While some companies found the model sustainable and beneficial, others cited operational and financial constraints as reasons to pause the trial [2].

Despite the mixed outcomes, the four-day workweek experiment challenges the assumption that longer hours equate to higher productivity. A separate OECD analysis highlights that countries like the Netherlands and Denmark, which rank among the lowest in working hours, maintain high GDP per hour worked through efficiency and policy support [4]. This suggests that Germany’s issue may not lie in the quantity of labor alone but in how it is utilized.

With an aging population and economic stagnation, the debate over work hours and productivity in Germany is gaining urgency. While Merz and other policymakers push for longer and more efficient work, the labor market is simultaneously shifting toward shorter hours and better work-life balance. As the government weighs its options, it must balance these competing priorities—boosting productivity without exacerbating burnout or reducing workforce participation.

Source: [1] Does Germany need to work harder? Its government ... (https://fortune.com/2025/09/07/germany-workweek-hours-labor-productivity-gdp-friedrich-merz/) [2] Germany tested the 4-day workweek — 73% of companies ... (https://glassalmanac.com/germany-tested-the-4-day-workweek-73-of-companies-say-theyre-never-going-back/) [3] Why Do Americans Work So Many Hours? (https://conversableeconomist.com/2025/09/01/why-do-americans-work-so-many-hours/) [4] Which country works the hardest? - by James Eagle (https://killercharts.substack.com/p/which-country-works-the-hardest) [5] 'Clock botching' is spreading and employee burnout is to ... (https://san.com/cc/clock-botching-is-spreading-at-work-and-employee-burnout-is-to-blame/)