Back in 2019, Iceland captured global attention by becoming one of the first countries to formally support a four-day workweek.
Rather than mandating it across the board, the country allowed employees and companies to jointly decide on shorter working schedules.
Now, nearly six years on, it’s evident that the expectations voiced by Generation Z were not only well-founded, but have come to life in remarkable ways—transforming both the workplace and everyday life.
Early Doubts Were Quickly Resolved
When Iceland began exploring a shorter workweek, skepticism was widespread. Critics feared it might lead to decreased productivity, higher operational expenses, or lower standards of service due to fewer working hours. These doubts weren’t just local; the entire world was watching. However, early trial programs—starting in 2015 with around 2,500 employees, or 1% of the national workforce—quickly debunked many of these concerns. By 2019, the initiative had grown substantially, with about 90% of the labor force benefiting from shorter hours—typically working 36 hours a week instead of 40—without any cut in salary.
Rather than falling, productivity held firm and even improved in several sectors. Workers reported feeling less stressed and more balanced in their personal and professional lives—core outcomes that Generation Z had long advocated for. Better mental health and enhanced job satisfaction emerged as key benefits, pointing to reduced working hours as a vital element in employee well-being.
Digital Innovation Drove the Transformation
Another striking aspect of Iceland’s shift was the improvement in gender equality. With fewer hours required at work, many men were more involved in home life, from childcare to chores. This helped foster a more equal sharing of domestic duties between men and women, promoting fairness both at work and at home.
Unlike countries like Belgium, where a compressed four-day schedule means longer workdays, Iceland ensured that workers maintained their full pay without extending daily hours. This was made possible by significant investment in digital infrastructure, which provided reliable, high-speed internet across the entire country, including rural areas. These upgrades supported widespread remote work, allowing companies to stay productive even as employees spent less time physically at the office.
This shift was especially natural for Generation Z, who have grown up surrounded by digital tools and platforms. Their ease with remote communication and virtual collaboration helped smooth the transition and sustain high performance in a more flexible environment.
A Blueprint for Other Nations
The benefits of Iceland’s reduced workweek are now seen well beyond the professional sphere. Citizens have more time to dedicate to family, hobbies, and social life. The relief from strict daily routines has boosted overall happiness and satisfaction with life.
María Hjálmtýsdóttir, a teacher and social advocate, commented on the changes, saying: “Moving to a 36-hour workweek has been life-changing for most of us. There’s less stress, greater contentment at work, and more time to truly live.”
Iceland’s example is influencing others, with similar experiments unfolding in countries like Germany, Portugal, Spain, and the UK. Although Belgium has passed legislation enabling a four-day week, it requires employees to work longer hours on the days they are scheduled—an approach that has limited its appeal and widespread use.
Still, Iceland’s success has sparked important conversations about the nation’s political future—particularly its ongoing debate about potentially joining the European Union. With elections on the horizon, this issue remains divisive, as only some political parties support EU membership.
Even amid these political discussions, Iceland’s achievements with the four-day workweek highlight its practicality and value. The country has crafted a sustainable model that centers on people’s well-being, proving that the future of work doesn’t have to be tied to outdated norms.
Generation Z helped lead the charge for this transformation, and the outcomes have validated their vision. Iceland’s story illustrates how meaningful reforms can lead to healthier workplaces, more satisfied employees, and a more balanced way of life.
