A study released on Friday revealed that Iceland’s trial of a four-day workweek has been “very successful.” The report highlighted the program, which introduced shorter working hours without any reduction in pay, between 2020 and 2022. During this period, 51% of Icelandic workers opted for the shorter workweek. Researchers found that the economy of Iceland outperformed most of its European counterparts and noted that it has one of the lowest unemployment rates in Europe, according to CNN, which cited findings from the Autonomy Institute in the UK and Iceland’s Association for Sustainability and Democracy (Alda).
“This study illustrates a remarkable success: shorter working hours have gained significant traction in Iceland, and the economy remains strong across various indicators,” said Gudmundur D. Haraldsson, a researcher at Alda, in a statement.
In two major trials conducted between 2015 and 2019, public sector employees in Iceland worked 35-36 hours per week while maintaining their salaries. Analysis of these trials showed that productivity remained stable or even improved in most workplaces, while workers’ well-being significantly increased across several measures, including reduced stress and burnout, as well as better health and work-life balance.
This is particularly noteworthy as critics of the reduced hours initiative had often argued that productivity would not rise with fewer working hours. The report concluded that the economy has stayed robust following the reduction in working time.
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According to the study, Iceland’s economy experienced an approximate growth rate of 4.1% in 2023, while the unemployment rate was just 3.6%, among the lowest in Europe. Additionally, the research indicated that a significant majority of Icelandic workers (78%) expressed satisfaction with their current working hours. Of those whose hours were reduced, 62% reported feeling more satisfied with their working time, while only 4% said they were more dissatisfied.
Furthermore, 97% of workers believed that the shorter workweek either made it easier to balance work with their personal lives or maintained the same balance as before. The study also found that 42% of those who switched to shorter hours felt it had reduced stress in their private lives, compared to just 6% who reported an increase in stress.