A recent study released on Friday highlights the success of Iceland’s experimental four-day workweek, which was implemented between 2020 and 2022 without any reduction in pay. The trial saw 51% of workers in the country opting for shorter hours, and researchers noted that Iceland’s economy outperformed many of its European counterparts during this period.
According to the report, conducted by the Autonomy Institute in the UK and Iceland’s Association for Sustainability and Democracy (Alda), Iceland now boasts one of the lowest unemployment rates in Europe. Gudmundur D. Haraldsson, a researcher at Alda, remarked, “This study shows a real success story: shorter working hours have become widespread in Iceland, and the economy is strong across a number of indicators.”
The trials, which took place from 2015 to 2019, involved public sector employees working 35-36 hours per week. Analysis revealed that productivity either remained stable or improved in most cases, while employee well-being saw significant increases across various metrics, including stress levels, burnout, health, and work-life balance. The report countered criticisms that reduced hours would hinder productivity, stating, “The economy has remained strong post reduction of working time.”
In 2023, Iceland’s economy grew by approximately 4.1%, with an unemployment rate of just 3.6%. The study found that 78% of Icelandic workers expressed satisfaction with their current working hours. Among those who had their hours reduced, 62% reported increased satisfaction, with only 4% feeling more dissatisfied. Additionally, 97% of workers indicated that the shorter workweek improved their ability to balance work and personal life, and 42% noted a decrease in personal stress, compared to just 6% who felt it had increased.
