No-Vacation Nation: 25% Get NO Paid Vacation

The United States is the only advanced economy that does not guarantee its workers any paid vacation time, according to a report by the Center for Economic and Policy Research. As a result, 1 in 4 private-sector workers in the U.S. do not receive any paid vacation or paid holidays.

The report, No-Vacation Nation, by Rebecca Ray and John Schmitt, finds that European workers are legally guaranteed at least 20 paid vacation days per year, with 25 and even 30 or more days common in some countries.

The gap between paid time off in the United States and the rest of the world is even larger when legal holidays are included. The United States does not guarantee any paid holidays, but most rich countries provide between 5 and 13 per year, in addition to paid vacation days.

“Relying on businesses to voluntarily provide paid leave just hasn't worked,” said John Schmitt, senior economist and co-author of the report. “It's a national embarrassment that 28 million Americans don't get any paid vacation or paid holidays.”

The sum of the average paid vacation and paid holidays provided to U.S. workers in the private sector – 15 in total – would not meet even the minimum required by law in 19 other rich countries.

A review of international standards shows that the United States lags far behind the rest of the world’s rich countries. The lack of paid vacation and paid holidays in the U.S. is particularly acute for lower-wage and part-time workers, and for employees of small businesses. The report finds:

• Employees of small businesses in the U.S. are less likely to have any paid vacation (70 percent) than those in medium and large establishments (86 percent).

• Lower-wage workers in the U.S. (those making less than $15 per hour) are even worse off. Only 69 percent have paid vacation, compared to 88 percent of higher-wage workers.

• Part-time workers in the U.S., who are much more likely to be women, are far less likely to have paid vacations (36 percent) than are full-time workers (90 percent).

The authors also found that several foreign countries offer additional time off for younger and older workers, shift workers, and those engaged in community service such as jury duty or voting.

The report reviewed the most recently available data from a range of national and international sources on statutory requirements for paid vacations and paid holidays in 21 rich countries (16 European countries, Australia, Canada, Japan, New Zealand, and the United States).

– The Center for Economic and Policy Research is an independent, nonpartisan think tank that was established to promote democratic debate on the most important economic and social issues that affect people's lives. CEPR's Advisory Board of Economists includes Nobel Laureate economists Robert Solow and Joseph Stiglitz; Richard Freeman, Professor of Economics at Harvard University; and Eileen Appelbaum, Professor and Director of the Center for Women and Work at Rutgers University. Find the Center for Economic and Policy Research online at: www.cepr.net.