Pursuing less labor for increased affluence?
Germany's Working Hours: A Clash Between Productivity and Personal Time
German Chancellor Friedrich Merz is advocating for extended work hours to sustain the nation's economic prosperity, yet surveys dating back to 2023 reveal a different narrative. Full-time employees have long desired shorter working weeks, with women and men wishing to decrease their work hours by an average of six and five-and-a-half hours, respectively, even if it means a reduced salary.
"Time wealth" - the value of having ample free time - is emphasized by time researcher Jürgen Rinderspacher from Münster University. He explains that time wealth extends beyond just leisure. It includes having free time, self-determined time, and the ability to spend time with loved ones. The current trend of overly compressed work schedules poses a threat to time affluence, considers Rinderspacher.
According to economists from the Vienna Chamber of Labor, shortening the workweek would promote individual prosperity. Economist Daniel Haim from AK Vienna affirms this notion, stating that shorter working hours lead to increased well-being. However, not all employees share this preference. Mini-job holders desire longer working hours, whereas the overall trend illustrates a desire for fewer hours.
Historically, the average working hours per capita in Germany have decreased by more than ten percent since the 1990s, primarily due to an increase in part-time employment. Although the working hours of full-time employees have also diminished in recent years, this decline is attributed to fewer overtime hours and reduced working time accounts. In many cases, employees decide independently to reduce their hours; however, the workload often plays a decisive role.
Despite the reduction in working hours per capita, the total workload in Germany has grown significantly over the past 20 years. In 2021, employment levels reached an all-time high, with a noticeable increase in female and older workers, as well as an influx of migrants in care facilities, factories, and offices. This trend has enabled the workforce to manage a greater workload, despite shorter average hours.
Critics and advocates alike question the pace of contemporary work. Some argue that policymakers should focus on determining which tasks are essential and delegating non-essential duties, as opposed to demanding more work altogether. Climate change presents another challenge, as economic growth remains a central political goal. However, GDP, a common measure in these debates, does not accurately reflect the distribution of prosperity or consider the value of leisure time.
Significant research highlights the benefits of reduced working hours, particularly in terms of employee satisfaction, stress reduction, decreased turnover, and improved health outcomes. These advantages extend beyond the workplace, potentially reduced broader societal costs related to stress and illness. Yet, the feasibility of implementing shorter working hours varies across sectors, depending on organizational and financial challenges.
In seeking a balance between productivity and personal time, careful policy design is crucial. Ensuring wage protection, while maintaining sector-specific feasibility and taking into account broader economic contexts, is necessary to reap the benefits of reduced hours while avoiding unintended consequences.
- Integrating the principles of 'science' and 'health-and-wellness', time researcher Jürgen Rinderspacher from Münster University advocates that 'time wealth' – the value of having ample free time – is essential for personal well-being, encompassing leisure, self-determined time, and time with loved ones.
- Economists, such as Daniel Haim from AK Vienna, support the notion that reducing 'workplace-wellness' hours would promote individual prosperity, leading to increased well-being, as posited by the economists from the Vienna Chamber of Labor.
- In discussions about the optimum balance between 'productivity' and 'personal time', policymakers may consider 'finance' implications and the feasibility of shorter hours across different sectors, aiming to reap the benefits of improved employee satisfaction, stress reduction, and health outcomes, while carefully designing policies to avoid unintended consequences on the economy.
