Fewer Public Holidays: Why Some Countries Are Cutting Back | DW 2025

The debate over public holidays and their impact on the economy is gaining traction worldwide. Some countries are considering reducing the number of public holidays to boost economic output, while others argue that these holidays are essential for worker well-being and overall productivity.

The Push to Reduce Public Holidays

• France: In July, Prime Minister Francois Bayrou proposed eliminating Easter Monday and Victory in Europe Day to ease budgetary pressures.
• Slovakia: Recently cut one public holiday to improve its fiscal position.
• Denmark: In 2023, removed a post-Easter holiday to create fiscal space for rising defense budgets.
• United States: Former President Donald Trump criticized the number of “non-working holidays,” suggesting they cost billions of dollars.

Conflicting evidence on Economic Impact

The evidence on whether fewer public holidays lead to greater economic productivity is mixed.

“Evidence to support this idea is limited. Productivity is driven less by the number of public holidays and more by factors such as labor efficiency, capital investment, workforce skills, and technology.”

Charles Cornes,senior economist with UK economic consultancy Cebr Some studies suggest that cutting holidays may lead to minor increases in GDP,notably if holidays fall on weekends and are not replaced. However, the IMF and Germany’s Bundesbank found that any GDP increase would be proportionally smaller than the increase in total working days.

The Argument for Leisure and Worker Well-being

While increasing working days might seem beneficial, there are counter-arguments about the importance of leisure time for worker well-being and long-term productivity.

“There is evidence to suggest that without more vacations and holidays, workers are at a higher risk of burnout, and this could lead to a decline in worker well-being more holistically.”

Adewale Maye, a policy and research analyst with the Economic Policy Institute in Washington, D.C.

The US Exception

The United States stands out among OECD countries as the only one without statutory leave. While it has 11 public holidays, manny industries operate during these days, and workers are not guaranteed paid time off. Experts argue that the US should focus on supporting workers and families rather than simply increasing working hours.

Other Factors Influencing Worker Productivity

Worker productivity is influenced by various factors beyond just the number of hours worked. These include labor efficiency, capital investment, workforce skills, and technology. In some sectors, like hospitality and retail, public holidays can even boost activity and support businesses. Ultimately, a balance between work and leisure is crucial for a healthy and productive economy. Edited by: Ashutosh Pandey