Iceland introduced a four-day shortened working week, which has had positive consequences for the economy and for the country’s citizens.
This is evidenced by a study by the Icelandic Institute of Social Sciences.
The Icelandic economy is outperforming most European economies after the nationwide introduction of a shortened working week without loss of pay. Between 2020 and 2022, more than half of the country’s workers accepted the offer to reduce their working week, and this figure is now even higher.
Last year, Iceland’s economic growth was faster than in most European countries, and the unemployment rate remained one of the lowest in Europe.
“This study shows a real success story: the shorter workweek has spread significantly in Iceland… and the economy is strong on several indicators,” said researcher Gudmundur Haraldsson.
About 62% of employees who have switched to a 4-day workweek say they are more satisfied with their working hours than before. At the same time, 97% of employees believe that the shorter work week has made their work-life balance easier or at least maintained it.
In two extensive experiments conducted between 2015 and 2019, public sector employees in Iceland worked 35-36 hours per week without a pay cut. Many participants had previously worked 40 hours a week. The experiment involved 2,500 people – more than 1% of the working population.
The researchers found that their productivity remained the same or even increased while the employees’ well-being “significantly” improved.