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140 Years Sick: How Germany is Killing Its Own Labor Market

Feb 13, 2025

Last night, just before AC Milan was about to face Feyenoord, my eyes fell on an article from January in The Economist. It dealt with the bizarrely high absenteeism in Germany.

What began as Bismarck's masterstroke against socialism - the world's first health insurance in 1883 - is now seen as an economic burden. It reminded me of conversations I often have with people about work-life balance.

The figures don't lie: German employees are sick on average 15 days a year, almost twice the EU average of 8 days. I see a fascinating paradox here: while we strive for better working conditions, German executives like Oliver Bäte of Allianz and Ola Kaellenius of Mercedes warn of the economic consequences.

Especially the comparison with other European countries. Mercedes' factories in Hungary, Romania, Spain, and Poland have comparable working conditions, but significantly less absenteeism. In the United Kingdom, employees take an average of only 6 sick days - although there they only receive £117 per week during illness, versus 100% salary continuation in Germany.

This discussion strikes at the heart of modern employment: how do you protect employees without harming competitiveness? In times of economic headwinds and high energy prices, this question becomes even more urgent.

Perhaps the solution does not lie in dismantling social provisions, but in smarter prevention: better hygiene, ergonomics, vaccinations at the workplace, and mental health support. As a recruitment professional, I believe that healthy employees are ultimately more productive - but finding the balance remains a challenge. Especially with the generous absenteeism policy in Germany.

Bismarck would undoubtedly be amazed at how his anti-socialist move has grown into a cornerstone of the German welfare state. And now, 140 years later, we are still grappling with the same fundamental question: how do we care for our employees without stifling the economy? The Netherlands, not such a bad country after all!

The source I used: https://www.economist.com/business/2025/01/23/germans-are-world-champions-of-calling-in-sick