On Juneteenth, President Donald Trump criticized the growing number of U.S. federal holidays, claiming they are hurting the country’s economy. In a post on Truth Social, Trump argued that too many non-working holidays are costing the nation billions of dollars and said the situation must change if America is to “Make America Great Again.” He added, “The workers don’t want it either,” and warned that soon there might be a holiday for every working day of the year.
While Trump’s concerns echo long-standing debates about productivity, economists and recent studies suggest the reality is more nuanced. Although federal holidays can lead to temporary dips in productivity—especially in industries like manufacturing—research shows they can also have positive long-term effects. Paid time off often improves employee morale and reduces burnout, resulting in higher overall productivity. One study by Ernst & Young found that for every 10 additional hours of vacation employees took, their performance reviews improved by 8 percent. Workers who took time off more frequently were also more likely to stay with their companies.
Recent findings by Microsoft also suggest that many employees are experiencing burnout from increasingly long workdays and round-the-clock meetings, further emphasizing the need for structured time off.
Trump’s claim that holidays shutter the economy entirely is also misleading. Many sectors, including retail, hospitality, emergency services, and transportation, remain active during holidays. In fact, federal holidays often stimulate consumer spending, with businesses offering sales that drive profits. A 2018 study in the U.K. showed that even small businesses benefit, earning an average of US$340 more on bank holidays.
While short-term economic output may drop slightly on holiday weekdays, experts agree the benefits of rest, employee satisfaction, and increased spending often outweigh the immediate losses. Trump’s criticism may appeal to concerns about lost productivity, but data suggests that federal holidays, when managed well, contribute to a healthier and more sustainable economy.