UK 4-Day Work Week

Jun 9, 2022 | Ask "Z" Economist

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Summary: The UK is conducting a 6-month test in which 3,000+ employees from 70 companies will be allowed to shorten their work week to 4 days at the same pay. The test is based upon the hypothesis that the employees will be able to maintain their productivity during the shortened week while being rewarded with more time for rest & relaxation (R&R). This mirrors a long-term trend in the US in which employees have been working fewer hours (see chart) while using their new-found time to engage in more R&R. The problem with this equation is that American productivity has not kept-up with a higher cost of living (as we discussed in our last post), leaving everyone poorer. A return to a strong work ethic in which workers are more interested in growing the economy and less focused on hours and R&R could be the missing ingredient to saving our country.  


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