An IMGW News Report
When Iceland rolled out its four-day workweek in 2019, many feared it would damage productivity and burden the economy. Six years on, the opposite has proven true. Iceland has not only maintained efficiency, but it has also improved quality of life and enhanced national prosperity.
“In Iceland, time is no longer just a cost – it is an asset”
The shift began modestly, with trials involving 2,500 workers. Today, almost 90% of the workforce enjoys a 36-hour week, with no loss of income.
Productivity has remained stable or risen, stress levels have dropped, and more equitable sharing of domestic duties has emerged. Unlike in Belgium – where a four-day week often means longer daily hours – Iceland retained both pay and reasonable hours. This was enabled by strong public services, tech-savvy systems, and nationwide high-speed internet – even in rural areas – allowing seamless remote work.
“the country is quietly turning time into wealth”
Crucially, Iceland’s embrace of reduced hours hasn’t come at the expense of economic output. In fact, the country ranks among Europe’s wealthiest by GDP per capita. As of 2024, Iceland’s figure sits at around $77,000, ahead of Germany ($59,000), the UK ($53,000), and significantly above Italy ($38,000).
Though not an EU member, Iceland enjoys full access to the European single market via the EEA agreement and maintains macroeconomic resilience.Its thriving financial services sector – particularly in asset management, green finance, and digital banking – has helped sustain growth and attract global investment. This diversification, alongside sustainable tourism and clean energy, has kept Iceland’s small economy dynamic and future-oriented.
For Generation Z, raised with different assumptions about work and time, Iceland’s model seems not radical but rational. It suggests that productivity need not be measured in hours logged, but in outcomes delivered.
In Iceland, time is no longer just a cost – it is an asset. And by managing it well, the country is quietly turning time into wealth.
