Tuesday, October 29, 2024

This Country's Economy Boomed After Introducing 4-Day Workweek: Research

Iceland's experimental four-day workweek has proven "very successful", according to a study released Friday. The report offered insights into the program's trial which introduced a shorter workweek in Iceland with no loss of pay. Between 2020 and 2022, 51% of workers in the country accepted the offer of shorter working hours, including a four-day week. Following the trial, researchers found that Iceland's economy outperformed most European peers. It also discovered that its unemployment rate is one of the lowest in Europe, CNN reported citing the Autonomy Institute in the United Kingdom and Iceland's Association for Sustainability and Democracy (Alda). 

"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," Gudmundur D. Haraldsson, a researcher at Alda, said in a statement, per the outlet

In two large trials conducted between 2015 and 2019, public sector employees in Iceland worked 35-36 hours per week, with no reduction in pay. Following the analysis of the trials, the researchers found that productivity stayed the same or improved in most workplaces, while workers' well-being increased "dramatically" in a range of measures, from perceived stress and burnout to health and work-life balance. 

"This is noteworthy as critics of the reduced hours initiative repeatedly claimed productivity would not increase in relation to reduced hours," the report stated, adding, "The economy has remained strong post reduction of working time." 

According to the study, Iceland's economy experienced a growth rate of approximately 4.1% in 2023. The same year, the unemployment rate stood at 3.6% - one of the lowest in Europe.

Also Read | Iceland's Volcanic Site Reopens For Visitors After Almost A Year, But, With A Warning

Moreover, the research also found that the change to a shorter workweek had significant results, with a large majority of Icelandic workers (78%) reporting that they were satisfied with their present working time.

Of those who saw their hours reduced, 62% reported being more satisfied with their working time. Only 4% of workers suggested being more dissatisfied. 

97% of workers also thought that the shorter workweek had made it easier to balance work with their private life, or it kept the balance the same as before. The study also discovered that 42% of those who had moved to shorter hours thought that it had decreased stress in their private life, versus 6% who felt it had increased. 



from NDTV News-World-news https://ift.tt/XQAd0tl

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