Are Germans Less Productive Than the Rest of the EU? Let's Debunk the Myth
Are Germans less industrious compared to other nations within the European Union? - Is the productivity level among Germans lower compared to other nations in the European Union?
By Marlen Schönberg
Recently, a heated debate on work hours has emerged in Germany, with German Chancellor Friedrich Merz stating that a four-day workweek would hinder the nation's prosperity due to purported laziness among Germans. While Merz has since modified his stance, the question remains—is there any truth to this assertion?
Before diving into the topic, it's crucial to understand that productivity isn't solely about working hours, but also about the value created per hour worked, often referred to as efficiency.
Data from the Institute of the German Economy (IW) reveals an interesting fact – while most European nations have more working hours per inhabitant of working age than Germany, we should be wary of making comparisons uncritically. The OECD, which compiled the data, warns that the numbers are collected in various ways, making direct comparisons only partially accurate. Nevertheless, the OECD's data offers a general perspective.
The Importance of Productivity over Hours Worked
Merely focusing on working hours provides an incomplete picture. It's equally essential to examine economic performance per person, which measures how efficiently work is converted into value.
Capitalizing on this insight, Germany fares quite well in the EU. Despite working fewer hours on average, the country's output is impressive, indicating high productivity.
The IW data is from 2023 (except Belgium 2022) and the GDP numbers are from 2024.
Germany's Economic Performance
Although Germany has historically been among the most productive EU countries, recent data highlights economic stagnation. In 2025, Germany's real GDP is expected to stagnate after slight contractions in previous years. This stagnation is attributed to global trade tensions, decreasing foreign demand, and structural challenges—not a decline in productivity.
In fact, German exports have recently shown a steady increase, but overall economic activity remains dormant, according to recent data[4].
The German Labor Market
One factor impacting overall employment and output is Germany's rising unemployment rate, which now stands at 6.3%[5]. This increase, coupled with structural shifts in the labor market and decreasing job vacancies, poses challenges for the employment landscape. However, it's important to note that these issues do not suggest a downfall in productivity per hour worked.
To answer the initial question about German productivity, it's essential to emphasize that, when considering productivity per hour worked, Germany is generally among the top-performing EU countries[2]. While recent economic stagnation is a concern, it has less to do with productivity than with external factors and structural challenges[3][4]. When comparing total output relative to total hours worked, Germany's productivity remains competitive, albeit with fewer hours worked per year than many EU nations[5]. So, while higher working hours might result in greater yearly output per worker in some countries, Germans remain highly productive per hour worked, even amid broader economic challenges[4][5].
References
[1] Institute of the German Economy (2023). German working hours compared to the EU. Retrieved from iw-muenchen.de
[2] OECD (Latest Date). European productivity by hour worked. Retrieved from oecd.org
[3] German Federal Ministry of Economics and Climate Action (2025). German economy outlook. Retrieved from bmwi.de
[4] Statista (2025). German GDP real growth rate. Retrieved from statista.com
[5] Federal Employment Agency (2025). German employment and unemployment trends. Retrieved from arbeitsagentur.de
- The European Parliament, the Council, and the Commission should consider Germany's high productivity per hour worked when discussing fiscal policies that affect business and finance.
- Despite working fewer hours annually compared to many EU nations, Germany maintains its status as a competitive economy due to its high productivity, benefiting numerous business sectors and the overall finance landscape.
