Iceland approved the 4-day workweek in 2019 — six years later, Gen Z’s predictions have come true

When Iceland took the bold step to approve a four-day workweek in 2019, it ignited a global conversation about the future of work. Fast forward almost six years, and the Nordic nation has proven that cutting the traditional workweek not only bolsters employee wellbeing but also sustains economic growth — just as Generation Z had predicted.

This ambitious shift is more than just fewer hours; it’s a radical rethinking of how work fits into life, backed by solid data and inspiring trends that may well reshape workplaces worldwide.

How Iceland’s four-day workweek became a reality

Iceland’s pioneering move wasn’t a spontaneous experiment but the result of careful planning and gradual implementation. Starting with pilot programs between 2015 and 2019, the government and private sector collaborated to test a reduced-hour model across various public and private organizations.

This strategic rollout helped overcome skepticism and fears that the economy might suffer. Instead, companies adapted seamlessly, supported by robust government infrastructure upgrades—particularly in high-speed internet access—which enabled flexible working arrangements.

The country’s investment in digital technology was key. Tools such as cloud-based collaboration platforms and online communication systems allowed employees, especially younger, tech-savvy Generation Z workers, to transition smoothly between remote and office work. Their ability to navigate digital workflows often positioned them as champions of this new work culture.

Mental health and family life: the unexpected social dividends

One of the most profound effects of the four-day workweek has been a remarkable improvement in mental health. According to reports from Iceland’s Directorate of Health, workplace-related stress, anxiety, and depression rates have dropped notably in recent years, reflecting the positive impact of additional rest and personal time.

This shift has also altered family dynamics across the country. Fathers are more involved in childcare and housework, helping to push Iceland closer toward true gender equality at home. Children benefit from increased parental presence, and couples report stronger, less strained relationships.

In addition, workers cite better sleep quality and more energy during workdays, creating a sustainable cycle of rest and productivity. The shorter workweek fosters not just individual health but also stronger communities, as people engage more in social activities, volunteering, and cultural events — boosting Iceland’s status as one of the happiest nations on Earth.

The economic case for working less: productivity and profits

Contrary to popular concerns, Iceland has shown that working fewer days doesn’t mean doing less. Productivity has remained steady or even improved in sectors that adopted the four-day week. Employees are more focused, and businesses see fewer interruptions and distractions, leading to higher quality output.

Economically, companies also benefit. Operational costs drop with fewer days spent on premises — less electricity, heating, and office consumption translate to real savings. This balance makes the four-day workweek a financially viable model.

Furthermore, Iceland’s labor market has become attractive to global talent. The appeal of a healthy work-life balance is a strong recruitment tool, fueling a brain gain that supports innovation and growth. A 2023 government report noted significant drops in sick leave and improvements in employee retention and customer satisfaction, further validating the model.

Supporting this, a 2023 OECD study highlights that countries reducing work hours often enjoy enhanced worker wellbeing and boosted productivity, reinforcing Iceland’s success story.

Iceland’s influence on global work culture trends

Inspired by Iceland’s results, several countries—including Germany, Portugal, and Spain—have launched pilot programs exploring shorter workweeks. The evidence is clear: flexible, condensed work schedules can thrive without sacrificing economic competitiveness.

Generation Z’s early advocacy for mental health, sustainability, and integrated life-work balance is being mirrored in these global shifts, showing they were ahead of the curve in envisioning future workplaces.

María Hjálmtýsdóttir, an Icelandic activist and educator, captures the essence of this transformation: “This isn’t just about changing hours; it’s a fundamental shift in how families and individuals pursue fulfillment and balance.” Her insight underlines the broader cultural impact of Iceland’s workweek experiment.

As other nations navigate post-pandemic work challenges, Iceland’s experience offers a powerful roadmap combining government foresight, business adaptability, and employee-centered innovation.

What are your thoughts on the four-day workweek? Have you experienced benefits or hurdles with flexible schedules? Join the conversation by sharing your views and stories below!