Policies aimed at shortening work hours can have a dramatic impact on imbalance of supply and demand. If the amount of vacation time is increased an average of one week a year, this amounts to a two percent reduction in supply of labor.
Government-mandated longer vacations are not actually reducing the supply of labor. It doesn't make people disappear. It just makes them work harder for the rest of the year to make up for the extra week of vacation. Combine that with stagnant demand (no rises in income = less consumption and also less tax money = less govt spending) and you haven't solved anything.
The real cure for a sluggish economy is a large-scale, man-fought war (barring any kind of nuclear event). War simultaneously boosts demand as the government ramps up spend across a bevy of sectors (industrial, aerospace, medical, food, science, tech) and the labor force decreases for obvious reasons.
Longer vacation is a much nicer and more politically correct thesis though.