The Impact Of Public Holidays On A Country’s Economy And Ajay Srinivasan’s Take On The Matter

If you are a working professional, then you must be keenly aware of the concept of public holidays. Public holidays are basically days that are designated by Governments as working days for the employees in recognition of various significant events and traditions that are of national importance. They are important for both employers and employees, as they affect work timings, schedules and staffing levels.

Ajay Srinivasan, one of the business leaders of India and the former CEO of Aditya Birla Capital, mentioned in a blog that these public holidays are days of extreme importance and they can have an impact on the country's GDP. They also provide employees with the much-needed time off from their work life allowing them to recharge and be more productive.

So, let us have a quick look at what public holidays are all about and what Ajay Srinivasan has to say about this issue.

Different Types of Public Holidays And Their Significance:

Public holidays are categorised into different types, like federal, state, and local holidays. In the United States, 10 federal holidays are observed by most Government offices and other independent businesses. This includes New Year's Day, Memorial Day, Independence Day, Thanksgiving Day, and Christmas Day. In addition to the federal holidays, some states and localities also observe their holidays. Countries like India have over 20 public holidays every year.

The public holidays serve as a window into national identity and priorities. They reflect the nation's history, values, and cultural identity according to Srinivasan. The nature and number of public holidays may vary dramatically from country to country. Now, some questions might come to your mind: What is the right number of holidays? Do more public holidays suggest a stronger focus on work? How should countries look at holidays vs bringing about economic development in the country?

Well, in this regard, Ajay Srinivasan, a well known name in the country’s financial sector, has recently mentioned that more time worked, though, does not equate to greater productivity, as countries like France and Germany where working hours are less than say US, China or India, rank higher on productivity per hour than these countries. There is also the question of mental health and burnout with extended work hours. So, it is important that companies don’t just focus on increased work hours. Instead, they need to ensure that the potential of each of the employees is leveraged for maximum business outcome.

Impact Of Public Holidays On A Country’s Economy:

With regards to public holidays, there must be  one big question that always lingers in the mind of policymakers: Do the number of public holidays have any impact on the country's economy? Government and policymakers recognise the potential implications of public holidays on overall economic productivity. An increase in the number of holidays correlates with positive impact on economic growth up to an optimal point. As per research, 10 public holidays are found to be optimal for fostering continuous economic growth.

These holidays offer employees the much-needed time off so that they can rejuvenate themselves and put more focus on their work. These holidays also help the employees in further motivating themselves in the long run. The holidays have an impact on the tourism industry, as most people opt for vacations during this span of time. They also tend to be culturally significant and signal what matters to the nation.

Does maximising GDP require maximising hours worked?

Now, here is another vital question which has been thrown at us by Ajay Srinivasan, “Does maximising GDP require maximising hours worked?” Well, various analyses have stated that working more hours doesn't necessarily increase overall output. The optimal number of hours for productivity is around 48 hours, beyond which employees can get overworked. So, it is not just about the number of hours but the productivity and the human potential that actually determine the GDP. When employees get the required break from work, they are able to rejuvenate themselves in a much better manner. They are also able to ensure that they can put better focus on work once they get back from their time off.

Final Thoughts:

So, as you can see, public holidays offer employees the much-needed break from work so that they can refresh themselves and get back to work with greater motivation and dedication. This is the reason why business leaders like Ajay Srinivasan encourage organisations to focus more on employee well-being rather than simply looking at the number of hours put into work. These much-needed breaks will not only allow the employees to perform better but will also ensure that the company's goals are fulfilled.