Germans work much less than other nations

A recent study by the Institute of the German Economy (IW) reveals that Germans work significantly fewer hours compared to most other economically comparable countries. According to the study, a working-age German (between 15 and 64 years old) worked an average of 1,036 hours in 2023, placing Germany near the bottom among the 38 OECD member countries.

‍

Germany’s working hours compared to other countries

According to the IW study, only France (1,027 hours) and Belgium (1,021 hours) had fewer hours worked per person than Germany. By contrast, countries like New Zealand (1,402 hours), the Czech Republic (1,326 hours), and Israel (1,312 hours) reported significantly higher working hours in 2023.

This data highlights a key challenge for Germany’s labor market as the country faces a growing shortage of skilled workers.

‍

Trends in German working hours over the last decade

Although Germans worked slightly more hours in 2023 compared to 2013 (an increase from 1,013 to 1,036 hours), this 2% rise is modest. Other European countries experienced much larger increases: Spain (+15%), Greece (+21%), and Poland (+23%).

Labor market expert Holger Schäfer explains that while Germans work less than in the 1970s, working hours have gradually increased since reunification.

‍

Factors limiting working hours in Germany

Several factors contribute to Germany’s relatively low working hours:

• High Part-Time Employment: About 30% of the German workforce is employed part-time, compared to 18% in Italy and just 6% in Poland. Many part-time workers want to work more hours but face barriers.
• Tax Disincentives: Steep tax rates for middle-income earners make additional work financially unattractive.
• Family and Childcare Challenges: Many women, especially mothers, want to work more but are hindered by limited childcare options and inflexible work models.
• Early Retirement Trends: Too few Germans work until the normal retirement age. The IW criticizes “false incentives such as the retirement age of 63” and urges politicians to abolish them to encourage longer working lives

‍

Recommendations to increase working hours in Germany

To address these challenges and meet future labor demands, the IW and government officials suggest:

• Encouraging more women to enter full-time work by improving childcare and flexible work arrangements
• Reducing part-time work incentives by making full-time work more accessible and attractive
• Reforming tax policies to remove financial penalties for working more hours
• Raising the retirement age and eliminating early retirement incentives, such as the retirement age of 63, to keep older workers in the labor force longer

‍

Future of Germany’s workforce

IW President Michael Hüther told Bild am Sonntag: "We are all already experiencing the shortage of skilled workers on a daily basis: restaurants are closed more often than before, nursing staff are overworked because they have too few colleagues. The situation is similar in daycare centers and small craft businesses." By the end of the decade, Germany will have a shortfall of "around 4.2 billion working hours", warned Hüther. Addressing this gap is crucial to sustaining the country’s economy, maintaining social services, and supporting businesses.

‍

Federal Chancellor Friedrich Merz has called for Germans to increase their working hours to help address labor shortages. Federal Minister of Labor Bärbel Bas (SPD) emphasized the need for better working conditions, especially to support more women, particularly mothers, to enter full-time employment. She stated that “every additional working hour helps us move forward” in overcoming workforce deficits.

‍

As Germany navigates these challenges, increasing working hours and expanding workforce participation will be vital for the country’s long-term economic health and competitiveness. This requires cooperation between policymakers, employers, and employees to create a more productive and flexible labor market.