What's Happening?
Some governments are proposing to reduce public holidays, arguing it could boost economic growth and ease budgetary pressures. French Prime Minister Francois Bayrou suggested eliminating Easter Monday and Victory in Europe Day, sparking political outrage. Similar moves have been made by Slovakia and Denmark to improve fiscal positions. In the U.S., President Trump criticized the number of non-working holidays, suggesting they cost billions of dollars. However, evidence supporting the idea that fewer holidays increase productivity is limited, with factors like labor efficiency and technology playing a more significant role.
Why It's Important?
Reducing public holidays could theoretically increase tax revenues and GDP, but studies show the impact is minor compared to the increase in working days. Public holidays may boost demand in certain sectors, such as hospitality and retail, which benefit from increased activity. Conversely, cutting holidays could lead to worker burnout, negatively affecting long-term productivity. The debate highlights the balance between economic growth and worker well-being, with countries like Austria and Denmark maintaining high GDP per capita despite numerous holidays.
Beyond the Headlines
The discussion on public holidays is part of a broader conversation on working hours and labor force participation. While some countries aim to increase working hours to tackle sluggish growth, eliminating holidays is a separate issue. The U.S. remains an outlier with no statutory leave, relying on public holidays that many industries still operate through. The debate underscores the importance of leisure time for productivity and worker well-being.
