Germany’s productivity paradox: Can prolonging working hours solve the problem of burnout economy?

Germany faces labor productivity challenges, with an average weekly working hours of 33.9 hours in 2024, which is below the EU average of 36 hours. Hourly labor productivity has stagnated over the past 15 years, while the average annual working hours per capita in 2023 were 1,335 hours, which is much lower than the 1,805 hours in the United States. Hourly productivity fell 1.7% in the second quarter of 2024 and 11% of the workforce will retire over the next decade, with Prime Minister Friedrich Mertz calling for longer and more efficient work to sustain prosperity. The proposed solutions include lifting the eight-hour daily work restrictions and tax benefits for retirees, despite a record 15.1 days of sick leave per capita in 2023. The recent four-day work week trial showed that 73% of participating companies hope to continue because this would increase efficiency and reduce stress.