Faster growth of the country, and happier workers

A great success of a shorter work week: Faster growth of the country, and happier workers

Iceland’s economy has outperformed most European countries after the introduction of a shorter working week across the country without a pay cut, according to the latest survey.

Between 2020 and 2022, 51 percent of workers there accepted the offer of shorter working hours, including a four-day work week, two “think tanks” found, pointing out that the percentage is likely to be even higher today.

Last year, Iceland recorded faster economic growth than most European countries, and the unemployment rate is one of the lowest in Europe, according to the Autonomy Institute from Great Britain and the Icelandic Association for Sustainability and Democracy (Alda).

“That survey shows that it is a real success: shorter working hours have become widely accepted in Iceland, and the economy is strong according to many indicators,” said Alde’s representative.

In two large experiments conducted between 2015 and 2019, public sector employees in Iceland worked 35 to 36 hours a week without a pay cut. Many of them were working 40 hours a week until then.

Workers’ welfare “drastically” improved

The experiments involved 2,500 people, more than one percent of Iceland’s working population, and were aimed at maintaining or increasing productivity while improving work-life balance.

It found that productivity in most work environments remained the same or increased, while worker well-being improved “drastically” across a range of factors, from perceived stress and burnout to health and work-life balance.

After the experiments, the Icelandic unions negotiated a reduction in working hours for thousands of their members across the country.

Iceland’s economy grew by five percent last year, the second-highest growth rate among rich European economies, after Malta, according to the International Monetary Fund’s latest World Economic Survey. At the same time, it is significantly higher than Iceland’s average growth of about two percent in the decade between 2006 and 2015.

Source: Agencies

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