Sick Leave Becomes a Productivity Crisis: How Germany’s Economy Loses Billions Each Year

Germany’s rising sick leave rates have evolved into a serious economic challenge, draining productivity and costing the country tens of billions of euros.

With absenteeism remaining well above historical averages, businesses and policymakers are increasingly concerned about the long-term impact on growth and competitiveness.

Studies suggest that prolonged employee absences are reducing annual economic output by up to one percent in the worst-case scenario.

As Germany faces labor shortages and weak growth, addressing health-related productivity losses has become a critical priority for sustaining economic recovery.