Do Fewer Holidays Really Boost the Economy? France’s Plan Under the Microscope
The French government is facing a backlash over a controversial proposal to cut two of the country’s 11 public holidays, with Prime Minister François Bayrou suggesting that the change could help plug a budget deficit. But will reducing time off really deliver a meaningful economic boost—or is this just another swing at a myth that doesn’t hold up under scrutiny?
Bayrou has proposed scrapping Easter Monday and May 8th—a day commemorating the end of World War II in Europe—arguing that the number of holidays has turned May into a gruyère, a cheese full of holes. His logic is simple: more days at work should equal more output and, by extension, more tax revenue. But the evidence suggests this may be a simplistic solution to a complex problem.
Not the First Time France Has Tried This
France has already experimented with this idea. After the deadly 2003 heatwave, which claimed nearly 15,000 lives—mostly elderly people—the government looked for ways to fund better elderly care. In 2005, Pentecost Monday (Lundi de Pentecôte) was dropped as a public holiday. Initially, 44% of workers gave it up, but participation dwindled, and by 2008 it was reinstated. The compromise was a “solidarity day,” allowing employees to give up a day of their choice for the cause—be it a holiday, vacation day, or seven hours spread throughout the year.
This past experiment shows the difficulty of enforcing such changes in practice, and more importantly, the minimal long-term economic impact of reclaiming a single day off.
What the Data Really Says
France isn’t alone in this line of thinking. In 2023, Denmark abolished its Great Prayer Day, a centuries-old Christian holiday. The economic results? According to the International Monetary Fund, the effect on Denmark’s GDP was negligible—between 0.01% and 0.06%. France’s own statistics agency, INSEE, estimates Bayrou’s plan would add just 0.06% to GDP. That’s barely noticeable in real terms.
So why so little impact? Because not all time off is lost time. While it’s true that production in certain sectors—especially manufacturing—may pause, other areas like tourism, hospitality, and retail often benefit. Additionally, holidays are considered essential for mental and physical well-being, which contributes to long-term productivity.
The Sweet Spot for Public Holidays
A 2023 study by the Centre for Future Labour Market Studies in Malaysia, which analysed 101 countries, found that there is a sweet spot when it comes to public holidays: around 9 or 10 days per year. Beyond that, additional holidays may begin to reduce economic output. But France, with 11 nationwide holidays, is hardly an outlier.
Compare this with:
- Nepal: 35 public holidays (the highest in the world)
- India, Colombia, Philippines: around 18
- United States: 12 federal holidays
- United Kingdom (England) and Canada: fewer than 10
- Slovakia: 15 (highest in Europe)
- Denmark and Netherlands: 9 (lowest in Europe)
France sits comfortably in the middle of the pack, far from being a country of excessive downtime.
Economic Output: It’s Not Just About Hours Worked
A deeper look reveals that more holidays don’t necessarily hinder growth. In Germany, where public holidays range between 10 and 13 depending on the state, a study by the Macroeconomic Policy Institute (IMK) found that states that introduced a holiday often saw stronger economic growth than those that cut one.
Similarly, a study of the Italian economy, which has about 12 holidays and is structurally similar to France, found that economic output did not decline in years with more public closures—in fact, it sometimes slightly increased. As Professor Francesco Maria Esposito of Birmingham Business School put it: “Companies have fixed production targets and work around holidays.”
Conclusion: Cutting Holidays May Be a Hollow Victory
France’s move to reduce public holidays may seem like a straightforward economic fix, but the evidence suggests otherwise. Not only is the projected boost to GDP minuscule, but cutting holidays could risk damaging worker morale and undercut sectors that thrive on leisure time.
With a holiday count that’s far from excessive by global standards, France may find that slashing days off achieves little financially—while costing a lot in public goodwill. As history and data both show, the relationship between holidays and economic growth isn’t as simple as “more work, more wealth.”
