Why The World Is Embracing 4-day Weeks, What Studies Show

Why are countries jumping on the four-day workweek trend? Because it’s more than just time off — it’s a game-changer.

In Japan, it’s a daring attempt to boost falling fertility rates by giving workers time to start families. In Spain, it’s about achieving the elusive work-life balance that’s become a modern dream. In Iceland, it’s proof of concept: shorter weeks led to soaring productivity and happier workers.

Work culture gets a tweak

From enhanced employee well-being to economic innovation, nations worldwide are testing this transformative approach to work. Could a global revolution in work culture be underway?

Is the four-day workweek a sign of capitalism adapting, or evidence of its capacity for self-correction?

Several countries and regions have embraced or piloted a 4-day workweek, citing improved productivity, employee well-being, and work-life balance.

Here’s an overview:

Iceland

Iceland was a pioneer, running two large-scale trials from 2015 to 2019 to test a shorter workweek for public sector employees, who worked 35–36 hours per week without a reduction in pay. The results were overwhelmingly positive, leading to 86 per cent of Iceland’s workforce now having the option to work reduced hours for the same pay.

In 2022, following the trials, 51 per cent of Icelandic workers had adopted reduced hours. Researchers from the Autonomy Institute in the UK and Iceland’s Association for Sustainability and Democracy (Alda) highlighted its success in boosting worker satisfaction without harming economic performance.

The results also coincided with Iceland’s economic strength: a 4.1 per cent growth rate in 2023 and an unemployment rate of 3.6 per cent, among the lowest in Europe. Gudmundur D. Haraldsson, a researcher at Alda, called it a “real success story,” emphasising how shorter working hours and economic resilience could coexist.

Spain

Spain launched a pilot in 2021 for a 32-hour workweek without salary cuts, aimed at improving work-life balance. Notably, Valencia experimented with local holidays aligning with the 4-day schedule, showing benefits in health and environmental metrics.

The government launched a €50 million ($60 million) initiative for a three-year four-day workweek trial involving 200 companies and 3,000–6,000 employees. The government provided funding and efficiency training to support the program.

Key findings from the Valencia trial (where holidays were moved to Mondays):

Improved health: Participants reported better health, reduced stress, and increased happiness.

Environmental benefits: Lower traffic reduced nitrogen dioxide emissions, enhancing air quality.

Work-life balance: Parents achieved better work-life balance, benefiting their children.

Leisure activities: Participants engaged more in hobbies like photography, music, and painting.

Japan

Known for its intense work culture, Japan is encouraging shorter workweeks through government guidelines. Microsoft’s trial in Japan showed a 40 per cent boost in productivity and reduced electricity consumption.

Starting this April, Tokyo is making waves with a bold experiment: a four-day workweek for its government employees. In a nation where overwork has long been the norm, this move by one of Japan’s largest employers is nothing short of revolutionary.

Tokyo’s plan is a strategic push to address two of the country’s most pressing challenges: empowering working mothers and combating a declining birth rate. Alongside the shortened week, a new “child care partial leave” policy will allow some employees to work two fewer hours daily, giving parents more precious time with their families, Fortune reports.

The initiative is a daring step for a city known for its relentless pace, signaling a shift in priorities toward sustainability, family, and the future of its workforce.

United Kingdom

In one of the largest global trials, over 60 companies tested a 4-day workweek in 2023, with most adopting it permanently after reporting increased employee satisfaction and unchanged productivity.

Germany

Germany has begun integrating shorter workweeks in some companies, often alongside flexible work arrangements.

As of November, “a few dozen” German companies have already allowed their staff to work four days a week without cutting their wages accordingly, according broadcaster DW.

Belgium

Workers in Belgium can now condense a full workweek into four days, giving them longer weekends without reducing hours.

US and Canada

In North America, several companies and states have piloted or implemented shorter workweeks, focusing on sectors where productivity can be maintained or improved.

On September 5, 2023, a few Canadian employers adopted a four-day workweek, reflecting a growing interest in improving work-life balance. According to Statistics Canada, while some have tested and implemented the idea, widespread adoption depends on individual employers considering economic and labor conditions before making the shift.

At a glance

The five-day workweek, a cornerstone of modern working life, traces its roots back to 1940 when the US federal government standardised the 40-hour workweek, mandating overtime pay for any hours beyond.

It was a radical shift, cementing a new era — but the journey to get there was anything but simple.

Before this landmark decision, companies could dictate grueling schedules with no regard for workers’ well-being. The seeds of change were planted in 1869 when President Ulysses S. Grant boldly guaranteed eight-hour workdays for government employees — a move deemed revolutionary at the time.

In the 1920s, industrial pioneer Henry Ford shocked the business world by introducing a five-day, eight-hour workweek in his factories. Ford became extremely successful.

Defying conventional wisdom, Ford slashed hours without cutting pay. His reasoning was practical yet profound: overworked employees were neither productive nor efficient.

Ford’s move paid off. His innovation became a template for the nation, proving that fewer hours could yield better results.

By 1940, the US had codified this idea into law, later adopted by most parts of the word, thus transforming the rhythm of work and life.

Brazil

Brazil has seen positive results in mid-trials of a 4-day workweek, with improvements in employee energy, reduced stress, and enhanced creativity.

Implementation and challenges

Adopting a 4-day workweek is largely voluntary in most countries, with governments supporting the move through trials or guidelines.

While many outcomes are positive, challenges include sector-specific adaptations and ensuring workload distribution aligns with reduced hours.

Studies suggest the 4-day workweek contributes to lower stress, better mental health, reduced carbon emissions (due to less commuting), and higher employee retention rates

What studies show

Studies suggest the 4-day workweek contributes to lower stress, better mental health, reduced carbon emissions (due to less commuting), and higher employee retention rates.

Two recent studies have provided insights into the impact of the 4-day workweek:

#1. UK’s Largest 4-Day Workweek Trial (2022-2023)

In a trial involving 61 organizations and 2,900 employees, participants worked four days a week with no reduction in pay for six months. Results, published in the journal Sociology, showed the following:

A 65% reduction in sick days and a 57% decrease in staff turnover.
71% of employees reported lower burnout, and 39% felt less stressed.
Productivity remained stable, with company revenues increasing by an average of 1.4%.
Most companies (92%) continued the reduced schedule, with 18 making it permanent.
Workers also reported improved work-life balance, mental health, and reduced anxiety

#2. US-based research on work-life integration

Studies link long hours to emotional exhaustion, cynicism, and dwindling confidence in personal achievements. This caught the attention of Prof Brendan Burchell and Dr. David Frayne of the University of Cambridge. Through the Digital Futures at Work Research Centre (Digit), they are diving into the transformative potential of a four-day workweek.

Of the 61 companies participating in the research, 56 said they are continuing with the four-day week (92 per cent), with 18 confirming the policy is a permanent change.

In collaboration with the UK’s largest-ever four-day week trial, funded by the Economic and Social Research Council (ESRC), these researchers are examining the logistics, fairness, and real-world outcomes of the bold shift.

UK Research and Innovation in July 2023 article, stated a four-day working week improves mental and physical health. And after experiencing a four-day working week, employers found that anxiety and fatigue levels decreased across workforces while mental and physical health improved.

The study also revealed a shortened work week enhances work-life balance and employee satisfaction, particularly in service and creative industries. Employers noted improved focus and creativity during the shorter workweek. Reduced commuting and longer weekends contributed to better mental health and family bonding time

Takeaways

Both studies highlight the benefits of a reduced work schedule, including improved health, retention, and productivity.
These findings continue to shape debates on redefining traditional work structures globally.