High Absenteeism Costs Economy Up to 160 Billion Euros - Germany’s Sick Leave Crisis Costs Economy €160 Billion Since 2020

Frequent sick leave among German workers has cost the economy billions over the past four years. A new study by the German Pharmaceutical Industry Association (VFA) reveals that high absenteeism is cutting into economic output. The problem has persisted well above pre-pandemic levels, with respiratory illnesses playing a major role.

The VFA estimates that economic losses from absenteeism could reach up to €160 billion since 2020. Last year alone, the sickness absence rate stood at 5.7 percent—nearly two points higher than the 2003–2019 average. The surge has been driven by flu, RSV, and COVID-19, with 2023 seeing an especially severe RSV wave.

From 2021 to 2022, sick leave spiked sharply, coinciding with more intense global flu seasons. Doctor visits have also climbed steadily since 2022, adding strain to healthcare systems. Despite measures like telephonic sick notes introduced in 2020, absenteeism has not fallen. The VFA warns that lost productivity could reduce annual GDP by at least 0.3 percent, potentially nearing one percent in extreme cases. To counter this, the group is pushing for stronger prevention efforts, including wider flu vaccination campaigns and proactive healthcare policies.

The study underscores the long-term economic impact of high sick leave in Germany. Without targeted prevention, respiratory illnesses and other health issues may continue to drain productivity. The VFA’s recommendations aim to curb absenteeism and ease pressure on both businesses and the healthcare system.