Germany explores 4-day workweek amid labour shortage
The trial comes as Germany is struggling to find enough skilled workers like many countries across the globe.
Dozens of German companies are starting an experiment that will see employees work a day less from this month.
In February, 45 companies and organisations in Europe's largest economy will introduce a 4-day workweek for half a year, reports Deutsche Welle, adding that the employees will continue to receive their full salary.
The trial comes as Germany is struggling to find enough skilled workers like many countries across the globe.
The initiative is led by the consulting firm Intraprenör in collaboration with the non-profit organisation 4 Day Week Global (4DWG).
The six-month programme starting Thursday (1 February) aims to find out if labour unions are right that it could not only leave staff healthier and happier, but also more productive.
Advocates argue that a 4-day workweek would increase worker productivity and, by consequence, help alleviate the country's skilled labour shortage.
Germany has a long-held reputation for industriousness and efficiency. Yet, in recent years, productivity in Germany has fallen.
"I'm absolutely convinced that investments in 'new work' pay off because they increase well-being and motivation, subsequently increasing efficiency," Sören Fricke, co-founder of event planner Solidsense, one of 45 companies taking part in the pilot, told Bloomberg recently.
"The four-day week, if it works, won't cost us anything either in the long run," he added.
According to Bloomberg, the project underscores a broader shift taking place in the German labour market, where a lack of skilled workers is putting pressure on companies to fill their ranks. The shortage — coupled with high inflation — has emboldened employees across industries to seek wage increases and preserve the flexibility and independence they gained during the pandemic.
The imbalance is fueling employer-employee tensions. Germany's train drivers are currently holding a six-day strike, demanding that Deutsche Bahn cut the work week to 35 hours from 38 hours without any wage reduction. The country's construction union is asking for a pay rise of more than 20% for many of its 930,000 workers — a move some economists warn could stoke inflation.
According to an industry lobby survey last year, half of German companies are at least partly unable to plug vacancies. Software giant SAP SE stopped asking for university degrees from applicants in 2022, while real estate firm Vonovia SE recruited people from Colombia last year to cope with the shortage.
And the problem is set to get worse. More than 7 million people are expected to leave the German labour force by 2035, as birthrates and immigration fall well short of what's needed to replace the ageing population.