Here in Finland, there are frequent japes made by American or British colleagues around the number of bank holidays afforded to us and the annual leave we are entitled to each year (a minimum of 5 weeks).
I find it no coincidence, however, that we maintain one of the highest number of bank holidays (13) and holiday entitlement while also being the Happiest Country in the World (for eight years in a row), with no productivity or financial loss as a result.
Taking appropriate time off – particularly for collective celebration and community commemoration – is a powerful driver of economic success: research has shown that those who use all their annual leave are 40% more productive than those who do not.
Bank holidays and morale
The UK ranks among the lowest in Europe with its rather paltry 8 permanent bank holidays, and to little surprise boasts a far worse work-life balance rating than Finland (62.1/100 to Finland’s 71.8; across all European nations, the UK places 18th on the work-life balance index while Finland places 5th). More bank holidays would bolster community social ties and collective identity, improve employee morale and ensure some degree of relaxation/burnout reduction, and would without a doubt improve the United Kingdom.
The notion of mutual exclusivity between work output and increased leisure time (afforded by a higher number of bank holidays), is quite alien here. This is not meant in a purely idealistic sense either: the OECD ranks Finland above the UK in productivity per hour worked. Indeed, building an environment which appreciates community and cultural values, and cultivating a workforce which is refreshed and not overexerted, is inevitable to produce better results (socially and economically).
Far too frequently there has been a failure to capture the overlap between a populace’s happiness, overall productivity, consumer sentiment and the amount of time off provided. In this regard, an increased focus on efficiency and productivity – measures through which the dual interests of employee welfare and economic success can both be far better gauged – rather than simply the sweeping measure of GDP, would help prove the utility of more bank holidays.
The economic case for more bank holidays
On a broader macroeconomic scale, the tourism and retail sectors, which in a post-pandemic and tariff-replete age are under considerable strain, would find multifaceted benefits from national holidays. Running a business that operates on gauging customer satisfaction within the retail sector, I can say with some certainty that introducing more bank holidays/national cultural events would boost the sector and produce distributed economic benefits across the country.
Indeed, bank holidays – unlike other far more regionally restricted commemorative events – have been shown to boost retail sales by 15% and strengthen local economies, with the governmental estimates of the potential costs of such days exaggerated by over 60% (according to a 2022 PwC report on the subject).
As for those who argue that there are not enough anniversaries or commemorative days that could – or should – be marked with bank holidays, they need only look to the latter half of year, where numerous opportunities can be found.
The importance of rest
It is often noted by Brits that the August to December period is entirely bereft of bank holidays, which seems misopportune given the quantity of historical events that could be leveraged as moments of collective unity and celebration.
To name a few: the ratification of the Slavery Abolition Act (August 1st), a remembrance of the Battle of Britain (September 15th), the Battle of Trafalgar Victory (October 21st) and Enfranchisement Day (5th October). These moments could be utilised to revitalise the populace, such that when they do return to work both the inclination to collaborate and collective morale are vastly elevated (both of which are instrumental in improving productivity).
Even a small increase, to relativise the UK’s bank holiday count to its European counterparts would prove fruitful for long-term output, worker satisfaction and mental health. We have a saying here in Finland – very apt for use on this subject: “Lepaa, jotta jaksat.” Rest, so that you can continue.
