As the largest trial for a four-day workweek wrapped up this month in the U.K., a handful of states are considering incentives for businesses to make the shift.
Peter Orazem, University Professor of Economics at Iowa State, says the concept of a shorter workweek has been around for decades and is common in certain shift-based sectors (e.g., law enforcement, health care.) However, the idea has resurfaced in recent years as large-scale experiments in multiple countries have shown positive results.
These include:
- A bump in productivity, possibly because employees felt more refreshed after a three-day weekend and less time commuting.
- Improved employee morale.
- A decrease in absenteeism; fewer workdays may make it easier to trade or fill shifts.
- A decrease in required office space and parking.
But Orazem points out that the pilot projects have involved willing participants. Results could be different in a randomized trial. There are other unknowns, as well, about potential impacts on the economy if four-day workweeks became more common.
“Given the current labor shortage, it may not be the best time for a large shift toward a four-day workweek unless workers maintain their hours,” says Orazem. “Some employees may prefer working 10-hour days, but others may just want to work fewer days, even if it means taking a pay cut. Firms that cannot find enough workers are unlikely to support reduced hours, and in fact, average hours per week rose in the pandemic.”
Over the longer term, Orazem says the average number of hours worked per week in the U.S. has remained relatively steady, and the initial increase in weekly hours in the pandemic has returned to the long-run average of 35 hours per week. What’s changed is a push for more flexibility for when and where people fill those hours.
Another shift during the pandemic was the increase in work from home. This also saves commuting time, reduces the need for office space, and raises employee morale, although the verdict on productivity is mixed. The shift toward home-based work may slow the move toward the four-day workweek if workers prefer home-based work more than working fewer days.
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