Germany trials a 4DWW amid labour shortage

When Germany, the most productive nation in Europe, decides to try out WFH via a 4-Day-Working-Week, one has to ask ‘why?’ given the debate ongoing about its pros and cons  – it turns out they seek not just to improve their productivity performance, which has been stalling, via extra workforce motivation but also to offset a skilled labour shortage – it seems the reported wave of immigration from elsewhere in the EU and beyond allowed by Angela Merkel did not top up their overall needs

The following article by Giulia Carbonaro, writing for Euronews.com, explains more

 

Germany is hoping that a shorter workweek will make workers more productive at a time when the country is experiencing a chronic labour shortage.

Germany has started a six-month four-day workweek trial that will allow employees at 45 companies across the country to work one less day per week for the same pay.

The initiative, which only involves companies whose work can be adapted to a shorter workweek, is led by Berlin-based management consultancy Intraprenör together with the collaboration of the non-profit organisation 4 Day Week Global (4DWG).

Advocates of the shorter workweek hope that working four days a week will make workers happier and more productive at a time when Germany is struggling with slower productivity growth and a labour shortage.

After reaching an all-time high of 105.20 points in November 2017, Germany’s productivity has steadily decreased, according to data from Deutsche Bundesbank, though it remains higher than other major economies in Europe. In November 2023, the latest data available, productivity slid to 95.80 points from 96.79 points the month before.

Working fewer hours per week might also convince those who are not willing to work a full week to enter the workforce, helping to reduce the current labour shortage which is affecting industrialised countries around the world.

Germany is currently struggling with a lack of workers in skilled high-growth sectors.

Last November, the DIHK Chamber of Commerce and Industry said that half of German companies were struggling to fill vacancies.

The thousands of jobs unfilled in the German economy caused the country to lose more than €90 billion in the past year, over 2 per cent of Germany’s GDP, according to DIHK’s Deputy Chief Executive Achim Dercks.

While it’s unclear whether the shorter workweek will fix this problem in any way, Germans appear excited to try it.

A Forsa survey found that 71 per cent of people working in the country would like to have the option to only work four days a week. Just over three-quarters of those surveyed said they were supportive of the government exploring the potential introduction of a four-day week. Among employers, more than two out of three supported this.

 

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