Iceland's experiment with a four-day workweek has shown remarkable success, according to a recent study by the Autonomy Institute in the UK and Iceland's Association for Sustainability and Democracy (Alda). The study, which reviewed data from 2020 to 2022, found that 51% of Icelandic workers embraced shorter work hours without any pay cuts, helping to make Iceland’s economy one of Europe’s strongest.
The concept was tested initially between 2015 and 2019 in public sectors, where employees worked 35-36 hours weekly without pay reductions. Researchers observed that productivity either stayed consistent or improved in most cases, while employee well-being also showed a significant rise. Key improvements included reduced stress, better health, and a healthier work-life balance.
Critics had suggested reduced hours might lower productivity, yet the study countered these claims, highlighting that the economy grew by approximately 4.1% in 2023, with an unemployment rate of just 3.6%.
The benefits of the four-day workweek were widely felt: 78% of workers expressed satisfaction with their current working hours, with 62% feeling more content since reducing their hours. Additionally, 97% reported an improved or stable work-life balance, while 42% experienced reduced stress levels in their personal lives.
Iceland’s success with a shorter workweek may serve as a model for other nations considering similar approaches to improving productivity and worker well-being.
