An In-Depth Look at Working Hours, Productivity, and Living Standards

No time to read?
Get a summary

The debate about how long a workday should be has lingered for years and has gained fresh momentum from recent policy agreements. Alongside this discussion, familiar claims keep resurfacing: that shortening hours fits a long-standing trend in the labor market, that technology helps people organize daily life more efficiently, and that fewer hours should bring more leisure and perhaps new chances in other fields. There is also a widespread hope that a shorter workday leads to a happier, more productive workforce. It is natural to want more free time and less stress, yet simply asserting this with statements like “Germany works fewer hours and lives better than Spain” or “Spain leads the EU in annual hours worked” does not prove the point. Wishful thinking alone does not make it real.

People often know someone who seems to accomplish more by working less—for example, a lifelong tenant who inherited a large estate and dedicates effort to its management, a famous influencer with millions of followers, a celebrated sculptor, or a highly sought-after surgeon. The reality is that the value of the work done in a given period matters most. High effort in physically demanding roles or difficult conditions does not always command higher pay, and the same can hold true in reverse. When considering a shorter workday, it is important to note the 880,000 workers in the latest Active Population Survey who, in the second quarter, accumulated about six million hours of overtime per week in Spain and received only around 60 percent of that overtime as compensation. The picture also includes those working without contracts or under part-time arrangements, and freelancers who face no formal time limits. For many, the push to shorten hours may resemble a lifestyle choice tied to inherited wealth rather than a universal fix for all workers.

Solving all labor-market imbalances at once is unlikely. Yet there is a tendency to favor routes that seem easiest while progress on long-term structural changes remains limited. It would be simple to legislate a shorter workday without considering the great diversity of productive sectors in modern economies, and without exploring non-face-to-face work arrangements. Real transformation requires addressing how different industries operate, how productivity can be raised, and how work, pay, and life can be balanced across a complex and interconnected economy. A wholesale shift away from face-to-face work would be challenging but could unlock lasting gains in living standards.

Germany is often cited as a benchmark for macroeconomic performance in recent years, though it is not universally the most productive in every sense. A straightforward comparison shows how productivity per hour differs across the European Union, including Spain. The simple indicator used here has limitations and omits data from some countries where particular factors—like natural resources or corporate tax structures—skew comparisons. Nevertheless, it highlights a clear pattern: EU average productivity per hour lags behind Germany by roughly a fifth in recent years. There are notable gaps between Germany and peers such as France or Sweden, while countries like Portugal or Romania sit somewhat closer to German levels. Spain trails Germany by more than twenty percent under similar measures, with data volatility in recent years. In 2022, the value produced per hour by a Spaniard was about 24.5 percent lower than what a German produced on average. These figures underline that the challenge is not simply reducing hours but elevating value created per hour worked, according to analyses from the OECD and Eurostat in 2023.

Santiago Niño Becerra on shortening the working day: “This is a mistake that will have consequences”

It is misleading to compare Spain’s working hours with those of France or Germany when their productivity per hour is much higher. The key is not the number of hours but the value generated per hour, as this determines living standards for both workers and employers in the long run. The evidence supports a broader view: company size often correlates with higher productivity, and sector differences reflect the unique strengths and weaknesses of the Spanish economy. This is not a call to stigmatize smaller firms or certain activities; rather, it invites a critical look at how productivity is pursued across the economy. Relying too heavily on low-cost labor arrangements—such as unpaid overtime or contracts that do not cover the full day—can undermine long-term competitiveness. The point is not about embracing a single rule but about pursuing reforms that meaningfully boost productivity and pass scrutiny, supported by national economic analyses from 2023.

No time to read?
Get a summary
Previous Article

Ursula von der Leyen’s Kyiv Visit: Ukraine’s EU Path, Reforms, and the Road Ahead

Next Article

Study Finds Written Exposure Therapy Speeds PTSD Recovery