Iceland’s experiment with a shorter workweek has yielded remarkable results over the past six years. Initiated as a trial between 2015 and 2019, the country reduced the standard 40-hour workweek to 35 or 36 hours without cutting pay. This approach focused on enhancing efficiency by eliminating unnecessary meetings and streamlining tasks rather than compressing the same hours into fewer days. This shift towards shorter workweeks reflects a growing global interest in reevaluating traditional work structures to enhance productivity and employee well-being. As a result of the trial’s success, approximately 86% of Iceland’s workforce has now either transitioned to shorter hours for the same pay or gained the right to do so under new labor agreements.
The outcomes were significant:
Productivity: Remained the same or improved across most workplaces.
Employee Well-being: Workers reported reduced stress, lower burnout rates, and improved work-life balance.
Economic Performance: By 2023, Iceland’s unemployment rate stood at 3.4%, and GDP growth reached 5%, indicating that the reduced hours did not negatively impact the economy.
Iceland’s model has inspired other countries to explore similar initiatives, including Spain, Germany, the United Kingdom, and New Zealand.
