Economic damage due to high sickness rates: German economy will not grow in 2023

Economic damage due to high sickness rates: German economy will not grow in 2023

According to a report by www.tagesschau.de,

The German economy shrank by 0.3 percent in 2023 instead of growing by almost 0.5 percent, as would have been the case without the above-average sickness rate. A recently published study by the Association of Research-Based Pharmaceutical Companies (VFA) shows that record high levels of sickness have had a significant economic impact. The high number of sick days led to significant production losses and a loss of value added of around 26 billion euros. In addition, insurance companies lost five billion euros due to sick leave, and there was a shortfall in tax revenue of 15 billion euros.

The analysis also shows that sick leave has significantly increased the economic burden in Germany compared to other countries. In order to reduce the economic consequences of waves of disease, investments in health and preventative measures are of great importance. If high levels of sickness remain the norm, the German economy will have around 350,000 fewer workers available.

Sickness levels varied in different sectors, with 70 percent of the loss of production occurring in sectors such as vehicle construction, mechanical engineering, metal, electrical, pharmaceutical and chemical industries. The high level of sickness made the work processes of many companies and authorities more difficult, especially given the shortage of skilled workers.

The main reasons for sick leave were colds and mental illnesses. On average, employees were absent from work for 20 days, with colds accounting for more than a quarter of the days missed. In addition, mental illnesses led to an average of 3.6 days of absence per year.

The study shows that high levels of sickness have had a significant impact on the German economy and the financial sector, highlighting the need for investments in health and prevention. These measures are crucial to maintaining labor force and productivity and supporting economic growth.