Perhaps one day this will become a reality in Ukraine as well.

Iceland has made history as the first country in the world to effectively transition to a four-day working week at the national level. In doing so, the country has challenged one of the major myths of the modern labour market — that reducing working hours harms the economy.

According to the Romanian online publication “HotNews”, official data show that Iceland’s economy not only avoided a downturn but also grew by 1.3% in 2025. Economic growth is expected to accelerate to 3% in 2026, while unemployment remains among the lowest in Europe.

According to data from Eurostat, the statistical office of the European Union, Iceland’s growth rate in 2025 outperformed those of much larger economies, including Germany, Switzerland, Norway, France, and Italy.

The implementation of the new model was preceded by extensive research conducted by the British think tank “Autonomy” and the Icelandic organisation “Alda”. Researchers concluded that after the reduction of the working week:

– levels of stress and professional burnout significantly decreased;

– employees reported improvements in mental and physical health;

– people had more time for family, rest, and personal life;

– labour productivity increased, as employees became better rested and more focused.

The transition to the new system began with two large-scale pilot programmes conducted between 2015 and 2019 by the Reykjavík city authorities and the Icelandic government. More than 2,500 employees — approximately 1% of the population — participated in the trials. The experiment covered not only office workers but also kindergartens, schools, hospitals, social services, police, and other public institutions.

The basic model involved reducing the working week from 40 to 35–36 hours without any reduction in pay. To achieve this, companies and public institutions optimised work processes, reduced the number of meetings, and eliminated unnecessary tasks.

Iceland’s experience demonstrated that work efficiency depends not on the number of hours worked, but on concentration, organisation, and productivity.

It is noted that Iceland’s success has already influenced labour markets in other countries. Trade unions and governments are using the results of the experiment to promote similar initiatives in the United Kingdom, Spain, New Zealand, and elsewhere.

Photo source: freepik.com