Why the Four-Day Workweek Is Being Put to the Test

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WSJ Your Money Briefing 8 min 2 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Unknown 0:00
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J.R. Whalen 0:30
Here's your Money Briefing for Thursday, June 9th. I'm J.R.

What is the UK four-day workweek pilot and who is participating?

J.R. Whalen 0:39
Whalen for The Wall Street Journal. Wouldn't it be nice if today was the end of the workweek? Companies around the world have been experimenting with employees working four days a week instead of five. This week, about 3,000 workers in the UK are taking part in a study to find out if less is more.
Catherine Dill 0:54
They're taking a look at whether working about 80% of the time with 100% of the output and earning 100% of the wages that these employees would earn otherwise can improve well-being without sacrificing productivity.
J.R. Whalen 1:10
The U.K. isn't the first country to experiment with reducing the work week. On today's show, we'll talk with Wall Street Journal workplace reporter Catherine Dill about the results of the studies as well as the chances of a four-day work week being implemented in the U.S.

How does the UK study measure productivity, pay, and well‑being?

J.R. Whalen 1:23
That's after the break.
Unknown 1:24
This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation. ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T.com.
J.R. Whalen 2:02
This week, the UK is launching a social experiment, the four-day workweek. And while that may sound like a good idea, including no change in pay, can workers really get everything done in four days they typically get done in five?

What did Iceland’s multi-year experiment reveal about output and stress?

J.R. Whalen 2:13
Wall Street Journal workplace reporter Catherine Dill has been tracking the pros and cons of a four-day workweek, as well as the chances it could be adopted in the US. Catherine, thanks so much for being with us. My pleasure. So Catherine, the idea of a four-day workweek, it's been talked about for a long time, but why has studying it gained so much support now?
Catherine Dill 2:31
You know, we're seeing that the pandemic really forced employers to rethink a lot of aspects of work, including the traditional five day, 40 hour schedule that many of us conceptualize the work week as. And they're looking for ways right now to boost loyalty and build morale and really to hang on to folks in a tight labor market.
J.R. Whalen 2:51
OK, so the UK launched a widespread study this week on people working a shorter work week. How are they doing it?
Catherine Dill 2:57
It's a six-month pilot project and it includes about 3,300 workers, 70 businesses across industries and occupations, you know, banks, fast food restaurants. marketing agencies are participating. And they're taking a look at whether working about 80 percent of the time with 100 percent of the output and earning 100 percent of the wages that these employees would earn otherwise can improve well-being without sacrificing productivity.
J.R. Whalen 3:28
And this has been done before. Iceland had a study that went on for four years. What was the result?
Catherine Dill 3:33
Between 2015 and 2019, Iceland studied this among a group of workers.

How have other countries and companies trialed reduced workweeks and with what results?

Catherine Dill 3:37
And in most cases, overall output didn't decline. In some cases, it actually improved. And most workers reported maintained or improved productivity as well as reduced stress.
J.R. Whalen 3:49
How have some of these experiments impacted the economy?
Catherine Dill 3:52
You know, the research on this is mixed. Studies in Germany and France have found that, you know, the thinking on this sometimes is that people working fewer hours will spread the work around a little bit.

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