In 2019, Iceland made headlines by becoming one of the first countries to officially approve a four-day workweek. But rather than passing a blanket law, the country allowed businesses and employees to negotiate shorter workweeks or reduced hours. Nearly six years later, it’s clear that the predictions made by Generation Z about the benefits of such a model were not only accurate, but they also highlighted its profound impact on both work and life.
Initial Concerns That Were Quickly Addressed
When Iceland first embarked on this journey, there were plenty of doubts. People wondered if productivity would drop, if businesses would face increased costs, or if it would be hard to maintain service standards with fewer working hours. In fact, these concerns were raised not only within Iceland but globally as well. But the results from the pilot program, which started in 2015 with 2,500 workers (about 1% of the workforce), quickly dispelled these fears. By 2019, the program was expanded, and nearly 90% of workers in Iceland were working reduced hours—just 36 hours a week instead of the typical 40, with no loss in pay.
Surprisingly, productivity not only remained steady, but in some sectors, it actually increased. Workers reported reduced stress and a better work-life balance, which were critical factors that aligned with the goals of Generation Z. This shift had a significant positive impact on mental health and overall well-being. It turns out that reducing hours might be the key to fostering healthier, happier employees.
Technology Plays a Key Role in Success
One of the standout elements of Iceland’s experiment was how it also promoted gender equality. The shorter workweek encouraged men to become more involved in family life. With fewer hours tied to the office, many men found themselves spending more time with their children and sharing household responsibilities more evenly. This led to a more balanced distribution of domestic work and parental duties across genders.
Unlike other countries, such as Belgium, where the four-day week is implemented by lengthening the remaining days, Iceland maintained full wages without requiring employees to work longer hours on other days. How was this possible? Thanks to massive investments in digital infrastructure, Iceland developed one of the best internet connections in the world, even in its remote rural areas. This digital infrastructure has been crucial for supporting remote work, which allowed businesses to maintain productivity while employees worked fewer hours in the office.
For Generation Z, who grew up immersed in digital technology, adapting to a flexible workweek was nearly seamless. Their comfort with remote work and digital communication helped facilitate the transition to a four-day workweek without disruption.
A Model for the World
The effects of the shorter workweek in Iceland have extended far beyond the office. Many Icelanders now enjoy a higher quality of life, with more time for leisure, family, and social activities. The reduction in stress from the previous rigid schedules has led to increased happiness and fulfillment in both personal and professional life.
María Hjálmtýsdóttir, an activist and teacher, reflected on the impact, saying: “The reduction of the workweek has been a huge success in Iceland. For 90% of us, the 36-hour workweek means less stress, more job satisfaction, and more time to enjoy life.”
Iceland’s experiment has served as an inspiring example for other countries, with pilot programs underway in Germany, Portugal, Spain, and the United Kingdom. While Belgium has passed legislation supporting a four-day workweek, it requires workers to make up for lost hours on longer workdays, which has limited its widespread adoption.
However, the Icelandic experience has raised some important political questions. While the success of the four-day workweek is undeniable, debates around Iceland’s potential membership in the European Union continue to divide the nation. As early elections approach, citizens will have the chance to voice their opinions on this crucial issue, with only certain political parties supporting the idea of EU integration.
Despite the ongoing political debate, Iceland’s experience has shown that the four-day workweek is not only feasible but also brings measurable benefits for both workers and society at large. The country has created a model that prioritizes human well-being, demonstrating that the future of work can be more sustainable and humane.
Generation Z played a key role in advocating for this change, and their predictions about the future of work are no longer just wishful thinking—they’ve become a reality. As Iceland’s success proves, embracing such reforms could lead to a healthier, more productive workforce and a society that values work-life balance over mere productivity.
