Iceland’s government introduced a nationwide shorter working week, allowing workers to reduce hours with no loss in pay, which led to improved productivity and a significant rise in worker well-being. Over 51% of the workforce adopted the policy, boosting the country’s economic performance, with faster growth and low unemployment rates, outperforming many European peers.
The Icelandic government played a key role in supporting work-life balance and driving economic vitality. Digital platforms facilitated productivity management, enabling a smoother transition to shorter working hours while maintaining efficiency across various sectors.
