High Absenteeism Costs Economy Up to 160 Billion Euros - Germany’s soaring sick days cost €160 billion as mental health crises deepen

Germany is grappling with a mounting issue of employee absenteeism, costing the economy billions annually. A recent study by the German Pharmaceutical Industry Association (VFA) shows that sickness rates have risen since 2021, driven by respiratory illnesses and declining mental health. Chancellor Friedrich Merz has now criticized the high number of sick days, calling for immediate action.

The VFA report indicates a sharp increase in absenteeism since 2021, with employees taking an average of 14.5 sick days per year. In 2022 alone, the sickness absence rate reached 5.7 percent—far above the 2003–2019 median. Respiratory infections like flu, RSV, and COVID-19 have been the main causes, alongside a steady increase in doctor visits since 2022.

Mental health has also deteriorated, with 25 percent of adults reporting depressive or anxiety symptoms in 2024. Young women are particularly affected, with 47 percent in the 18–29 age group experiencing such issues. Long commutes and work-related stress have contributed to psychosomatic illnesses, exacerbating the problem.

The economic impact is severe. The VFA estimates losses of up to €160 billion over the past four years, equivalent to losing 300,000 workers annually. Conservative projections suggest absenteeism could reduce GDP by up to one-third of a percent—potentially nearing one percent in extreme cases.

In response, Health Minister Nina Warken has announced a review of telephonic sick notes. Meanwhile, the VFA is advocating for stronger prevention measures, including wider flu vaccination campaigns to cut down on illness-related absences.

The government and health authorities are now under pressure to address the rising costs of absenteeism. Policy changes, better mental health support, and preventive healthcare measures may be introduced to reduce the economic burden. Without action, the trend could continue to strain businesses and public services in the coming years.