Iceland has seen remarkable economic growth since introducing a four-day work week , CNN reports. In 2023, the country's gross domestic product (GDP) grew by 5%, which is impressive for a developed economy. Among rich European countries, only Malta achieves higher growth. In comparison, between 2006 and 2015, Iceland's economic growth was only around 2% per year, as cited by Focus.
Analysts attribute this success to the reduction of the working week. Between 2015 and 2019, Iceland ran experiments where public sector workers worked 35-36 hours a week instead of 40, without a pay cut. More than 2,500 people participated in them, representing more than 1% of the workforce in the country.
The results showed that productivity remained the same or improved, while worker well-being saw a significant increase. Subsequently, the unions reached agreements for shorter working hours for tens of thousands of Icelanders. By 2022, 51% of the population switched to a four-day work week, and today this figure reaches 59%.
"The study demonstrated real success – short hours have taken hold and the economy remains strong," notes study author Gudmundur D. Haraldsson. Although economists predict a slight slowdown by the end of 2024, low unemployment remains a clear indicator of the economy's stability, analysts say.