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Reports from IMF, Bundesbank, and Cebr Indicate That Economic Gains Are Minimal, While Sectors Such as Hospitality and Retail Earn More on Days Off.
Discussing whether cutting holidays increases productivity has returned to the center of the debate after countries like France, Slovakia, and Denmark reduced commemorative dates in the name of fiscal adjustment. However, studies cited by G1 and by international organizations show that the positive impact on GDP is minimal — and, in some cases, the measure can even harm sectors that depend on consumption on those days, such as tourism, hospitality, and retail.
The IMF and the Bundesbank highlight that artificially increasing the number of working days does not guarantee proportional economic growth. Productivity is much more linked to factors such as investment in technology, workforce qualification, and work efficiency. The Cebr (Center for Economics and Business Research) states that “the evidence is limited” and that cutting holidays can be a strategic mistake when looking at the balance between production and well-being.
France, Denmark, and the U.S. at the Center of the Debate
In July 2025, French Prime Minister François Bayrou proposed eliminating two national holidays: Easter Monday and Victory in Europe Day (May 8). The measure was presented as a solution to alleviate budgetary pressures but generated strong political and union resistance. Slovakia adopted a similar measure in 2025, and Denmark had previously cut a post-Easter holiday in 2023 to free up defense budget space.
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In the United States, where there are already 11 national holidays, former President Donald Trump criticized the excess of days off by stating, on June 19 (Juneteenth), that “many unpaid holidays cost billions.” However, the country is the only one in the OECD without paid vacations, and a good part of the economy continues to be active even on holidays — especially in retail, tourism, and transportation.
What Studies Say About GDP and Productivity
A 2021 study signed by Lucas Rosso and Rodrigo Andres Wagner pointed to mixed effects of holidays. When they fall on weekends and are not replaced, there is a slight increase in GDP. However, when they fall on working days, some sectors experience a contraction, while others, such as retail and services, register growth.
The Bundesbank warns that the net impact of cutting holidays is disproportionately small. In other words: the gain of a few tenths in GDP does not compensate for the loss of well-being of the population. The EPI (Economic Policy Institute), in the U.S., goes further: reducing days off can increase cases of burnout, which decreases productivity in the medium term and pressures the healthcare system.
Sectors That Lose and Sectors That Gain
Holidays have an unequal effect. Industries and banks tend to lose productivity when there are disruptions, but retail, tourism, and hospitality register significant increases in revenue on these dates. According to experts, this extra consumption helps to balance the economy, especially in countries where e-commerce pressures physical stores.
In Europe, countries like Austria (38 days), Denmark (36), and Finland (36) combine high numbers of paid days (vacation + holidays) with high per capita GDP. This data reinforces that rest and growth are not mutually exclusive: in many developed economies, more time off coexists with high productivity.
The debate is also of interest to Brazil, where there are frequent discussions about turning holidays into optional points to “stimulate the economy.” However, international data indicates that more working days do not necessarily mean more production. The policy may even increase revenue in the very short term, but in contrast reduces demand in sectors that benefit from leisure.
In your opinion, should Brazil cut holidays to increase productivity or keep the dates as part of the balance between economy and quality of life? Do you think the country would gain or lose from this change? Leave your opinion in the comments.
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