German work hours are amongst the lowest in the world

Germans worked fewer hours than nearly every other developed nation in 2023, as reported by DW on May 16, 2025.

The data reveals that average German work hours per working-age resident reached just 1,036 last year, the third lowest among 38 OECD countries.

Only France (1,027 hours) and Belgium (1,021 hours) reported fewer average working hours than Germany. At the other end of the scale, the most work hours were recorded by New Zealand (1,402 hours), followed by the Czech Republic (1,326 hours), and Israel (1,312 hours).

Germany’s 1,036 average hours show only a modest 2% increase over the past decade. Meanwhile, Spain’s working hours surged by 15%, Greece by 21%, and Poland by 23%.

“Compared to the 1970s, we work less, but since reunification, the increase has been marginal”, IW labor market expert Holger Schäfer stated.

Implications of Declining German Work Hours 

As Germany enters a period of economic uncertainty, a reduction in national work input is raising red flags. Although employment levels reached a record 46 million in May 2024, overall hours worked remain stagnant.

Chancellor Friedrich Merz addressed the issue directly in parliament: We must work more and, above all, more efficiently in this country.”

The IW estimates that by 2030, Germany will face a shortfall of over 4.2 billion working hours if current trends continue. This shortfall could erode competitiveness and weaken Germany’s position in the global economy.

What’s Holding Back German Work Hours? 

Several structural and cultural factors contribute to low German work hours:

• High part-time rate: About 30% of German workers were employed part-time in 2023. For comparison, Italy’s rate was 18% and Poland’s just 6%.
• Early retirement: Many Germans retire at 63, drawing criticism from IW analysts who urge reform to extend working lives.
• Limited workplace flexibility: Many women are unable to increase work hours due to inflexible schedules and inadequate childcare.

“Women in particular often work less, earn less, and ultimately face poverty in old age,” stated Labor Minister Bärbel Bas, “This is unfair, and we must address it.”

Without addressing these obstacles, Germany risks further erosion of its productive potential.

Tax Policy and Reform Debates

Germany’s tax system is also a significant deterrent. Middle-income workers often see overtime offset by high marginal tax rates, making additional hours financially unappealing.

The IW is calling for the removal of what it labels “perverse incentives,” including the early retirement option and regressive tax thresholds. Institute President Michael Hüther added that labor shortages are already evident in restaurants, healthcare, daycare centers, and craft businesses.

These realities are fueling growing pressure on lawmakers to reform policies and unlock the country’s full labor potential.

What This Means for Germany

German work hours are now a central issue in discussions about labor reform, competitiveness, and economic resilience. While some see shorter hours as a sign of progress, experts and policymakers warn that the country cannot afford to work less while expecting more.

Increasing German work hours, especially through smarter tax policies and inclusive labor practices, will be key to future stability.

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