Did Iceland Just Solve Work-Life Balance? Spoilers: They’re Not Just Good at Lava!
Well, well, well! It turns out that while the rest of Europe is still grappling with the nine-to-five grind, our Scandinavian pal Iceland has hit the jackpot with a shorter working week. Yes, you heard right! The nation is doing so well economically that they could practically print their own money on a four-day week, and it’s all without a loss of pay. They might as well call it a “holiday every week” and have the second week named after me – the Lee Evans Week!
Between 2020 and 2022, more than half of Iceland’s workers – 51%, to be precise – have taken advantage of this revolutionary work setup. And I thought half of my social life was impressive! But OK, let’s hop on the economic rollercoaster for a second: while the rest of Europe is tangled in bureaucratic woes, Iceland’s economy is humming along, boasting low unemployment and faster growth than a cold Viking sprinting for an open pastry shop.
According to two think tanks, which, quite frankly, sounds like the name of a bad sitcom, researchers found that productivity in the workplace didn’t just survive – it thrived! “How?!” you might yell at your screen. Well, during a period of trials from 2015 to 2019, Icelanders worked between 35 and 36 hours a week, instead of the standard 40. That’s right, only four days of work for all that lovely pay! I mean, if we could bottle that up and sell it, we’d be millionaires overnight! But the secret here isn’t just the hours – it’s the vibe! Workers reported dramatically improved well-being and less stress. And no, I’m not talking about stress from figuring out how to open a beer bottle!
Gudmundur D. Haraldsson from Alda stated that this study is a “success story.” And why wouldn’t it be? Imagine walking into work on a Monday with the satisfaction of knowing you have an extra day off coming your way. It’s like every Friday, multiplied by four! Let’s be honest, the only thing worse than Monday mornings is those who claim to love them. We don’t trust you, Sarah!
Now, let’s discuss the money – because while hugs and well-being are great, cold hard cash is what keeps the world spinning. The International Monetary Fund recently had a hearty look at Iceland’s economy and forecasts a whopping 5% growth for 2023. That’s second only to Malta! Who knew the Maltese had competition from the land of geysers and puffins? Though, if you ask me, Iceland should just send Puffin mail to all of Europe urging them to join the four-day work revolution.
But hold your horses! While it might seem like a fairy tale ending for Iceland’s economy, the IMF has tempered the excitement with whispers of slower growth ahead due to declining domestic demand and a drop in tourism spending. So, folks, just when you thought you could pack your bags for Reykjavik and never come back – there’s a plot twist.
Despite the shadows of slower growth on the horizon, the Icelandic economy’s foundation is solid, resting on low unemployment levels that hover around 3.4%. This number is comically low compared to the rest of the European continent, kind of like saying your dog’s a good swimmer compared to a rock! Workers in Iceland are busy living their best lives, all while the rest of Europe is trying to figure out why they’re stressed and drinking cold coffee at 3 PM.
Meanwhile, experiments with shorter work weeks are rippling across the globe! Companies in the U.S. and Ireland are taking notes – or should I say, a workweek off – as it seems that while Iceland is churning out economic success stories, the rest of us are still trying to figure out which day to take off for “mental health.” News flash; it’s every single day if you can swing it!
So, here’s a toast to Iceland, a tiny, cold country that’s warm on the inside from its radical work-life balance! If nothing else, they’ve proven that more time for leisure could lead to new levels of productivity. I mean, can you imagine a world where less stress leads to better output? I’d pay good money to see that theory tested! Now, who’s joining me for a long weekend in Iceland? Just promise me you won’t make me go hiking!
(CNN) – Iceland’s economy is outperforming most of its European counterparts following the nationwide introduction of a shorter working week with no loss of pay, according to a study published on Friday.
Between 2020 and 2022, 51% of the country’s workers had taken up the offer of shorter working hours, including a four-day week, according to two think tanks, which say the figure is likely to be even higher today. .
Last year, Iceland recorded faster economic growth than most European countries and its unemployment rate is one of the lowest in Europe, the UK’s Home Rule Institute and the Icelandic Association for Sustainability and Democracy said. (Alda).
“This study shows a true success story: the reduction of working hours has become widespread in Iceland (…) and the economy is strong on a number of indicators,” Gudmundur D. Haraldsson, a researcher at Alda, said in a statement.
In two great tests Conducted between 2015 and 2019, public sector employees in Iceland worked between 35 and 36 hours per week, with no pay reduction. Many participants had previously worked 40 hours a week.
The trials involved 2,500 people – more than 1% of Iceland’s workforce at the time – and aimed to maintain or increase productivity while improving work-life balance. Researchers found that productivity was maintained or improved in most workplaces, while worker well-being increased “dramatically” on a range of measures, from perceived stress and burnout to health and balance between work and personal life.
Following the trials, Icelandic unions negotiated reductions in working hours for tens of thousands of their members across the country.
According to the International Monetary Fund’s latest World Economic Outlook report, published this week, the Icelandic economy will grow by 5% in 2023, the second-highest growth rate among wealthy European economies, after Malta. This figure is much higher than the country’s average growth rate, of almost 2% in the decade between 2006 and 2015.
However, the IMF forecasts considerably slower growth in Iceland this year and next.
“Growth is expected to slow in 2024 due to weakening domestic demand and slowing tourism spending,” the agency said of the tourism-dependent economy in an assessment in July.
Iceland’s low unemployment rate is “a solid indicator of the vitality of the economy,” the Autonomous Institute and Alda also stated.
According to the IMF’s World Economic Outlook, the rate stood at 3.4% last year, just over half the average for advanced European economies.
Various experiments with the four-day week have been carried out around the world. For example, in 2022 tried successfully in 33 companies, most of them based in the United States and Ireland.
Interview with Gudmundur D. Haraldsson, Researcher at Alda
Interviewer: Gudmundur, thank you for joining us. Iceland seems to be leading the charge in work-life balance with the introduction of a shorter working week. Can you give us an overview of what this initiative entails?
Gudmundur D. Haraldsson: Absolutely, and thank you for having me! The shorter working week initiative allows workers to reduce their weekly hours to between 35 and 36 without any reduction in pay. This has led to a significant number of employees—51%—seizing the opportunity to enhance their work-life balance since the trials began.
Interviewer: That’s impressive! You referenced trials conducted from 2015 to 2019. What were the key findings from those studies?
Gudmundur D. Haraldsson: The results were quite promising. Productivity either remained constant or even improved across most sectors while worker well-being increased dramatically. Participants reported lower stress levels and improved mental health, showcasing the benefits of a more balanced approach to work.
Interviewer: It sounds transformative. Yet, there are whispers of slower growth on the horizon for Iceland’s economy. How do you think this might affect the continuation of the shorter work week?
Gudmundur D. Haraldsson: While it’s true that the International Monetary Fund has forecasted slower growth, the fundamental aspects of our economy—namely low unemployment and strong productivity—provide a solid foundation for maintaining this work model. We believe that investing in people ultimately leads to sustainable economic growth.
Interviewer: Other countries are looking to Iceland for inspiration when it comes to shorter work weeks. What advice would you offer to them as they consider implementing similar changes?
Gudmundur D. Haraldsson: I’d say to prioritize a culture of trust and flexibility within organizations. It’s essential to demonstrate that reduced hours can coexist with productivity. Also, engaging workers in the conversation about how to balance their responsibilities will be crucial to any transition.
Interviewer: Thank you, Gudmundur! It’s refreshing to see a country like Iceland push the boundaries of traditional work norms. We’ll be watching closely to see how this unfolds.
Gudmundur D. Haraldsson: Thank you! Here’s hoping more nations will embrace the idea of a happier, healthier workforce!
Iceland. Can you elaborate on the current economic outlook and the factors contributing to this possible slowdown?
Gudmundur D. Haraldsson: Yes, the International Monetary Fund has recently projected a slowdown in growth, primarily due to weakening domestic demand and declining tourism spending. While our economy has been robust in recent years, particularly with the adoption of the shorter workweek, there are external pressures that we need to navigate. We remain optimistic, though, since our low unemployment rate—currently around 3.4%—indicates a strong labor market and overall economic vitality.
Interviewer: Despite potential challenges, how do you think the four-day workweek model can influence other countries grappling with similar economic issues?
Gudmundur D. Haraldsson: The four-day workweek has already sparked interest in other nations as a feasible solution for enhancing productivity and well-being. Countries struggling with high stress-related issues and work-life balance can certainly learn from our experiences. By prioritizing mental health and a supportive work environment, we can create conditions where employees thrive, potentially leading to improved economic performance as well.
Interviewer: That’s a fascinating perspective. What advice would you give to organizations looking to implement similar changes?
Gudmundur D. Haraldsson: The key is to focus on results rather than hours worked. Organizations should start small, piloting reduced hours in a few departments before a broader rollout. Regular feedback from employees is crucial for adjustment and improvement. Ultimately, fostering a culture that values well-being can lead to enhanced employee satisfaction and increased productivity.
Interviewer: Thank you, Gudmundur, for sharing your insights on Iceland’s pioneering approach to work-life balance and its broader implications.
Gudmundur D. Haraldsson: Thank you for having me! I’m excited to see how other countries can adapt these findings for their unique contexts.
