When Iceland first made waves by embracing a shorter workweek, the world watched with curiosity — and no small amount of skepticism. But nearly six years later, the country has become a real-world case study in what happens when a nation reimagines the rhythm of work. And interestingly, many of the changes that emerged were exactly what Gen Z had been anticipating all along: more balance, better mental health, and a work culture built around living, not just laboring.
Below, we take a look at the reality behind Iceland’s bold shift — and why younger generations saw it coming.
Initial Concerns That Quickly Faded
When Iceland began experimenting with a shorter workweek in 2015, doubts were everywhere. Critics feared lower productivity, higher costs, and chaos in workplaces used to 40-hour norms. The government’s pilot involved about 2,500 workers — roughly 1% of the population — and was expanded after early results proved reassuring.
By 2019, around 90% of Icelandic workers had shifted to 36-hour weeks with no pay cuts.
Rather than slumping, productivity remained stable — and in some sectors, improved. Employees reported:
- Lower stress,
- Better sleep,
- Higher satisfaction,
- And a significantly better work-life balance,
all of which echo the values Gen Z has been vocal about for years.
Technology Played a Hidden Yet Essential Role
One of the most surprising outcomes was the effect on gender equality. With fewer hours tethered to an office, men took on more family responsibilities, balancing domestic work more evenly with their partners.
Iceland’s strong digital infrastructure also made the transition possible. With some of the most reliable internet coverage in the world, remote work became efficient and natural — especially for Gen Z, who already navigate everything digitally.
A Model Other Countries Are Watching Closely
The results of Iceland’s experiment extend far beyond office productivity. Many residents now report a higher quality of life. As activist and teacher María Hjálmtýsdóttir put it:
“For 90% of us, the 36-hour workweek means less stress, more job satisfaction, and more time to enjoy life.”
Inspired by Iceland, countries such as Germany, Portugal, Spain and the UK are running their own tests. Belgium also adopted a four-day workweek option, though structured differently.
Gen Z Saw the Future Coming
What stands out is how closely these results match the very work model Gen Z has been advocating:
- Flexible schedules
- Mental health protection
- Digital-first workflows
- Better balance between life and work
Iceland didn’t just prove this vision possible — it showed it can be transformative.
