Should the U.S. Implement a 4 Day Workweek?
Should the U.S. Implement a 4 Day Workweek?
Should the United States adopt a 4 day workweek? Let’s analyze the economics and business model behind that.
Globally, many countries have adopted or implemented some form of the 4 day workweek, and they have been successful. Countries like Iceland, Belgium, and the UAE have all had some success in limiting working hours, yet still having high production.
What would happen if the U.S. started implementing a 4 day work week?
Productivity
An extra day of rest and relaxation can be crucial in raising productivity and efficiency across a workforce. With a limited amount of hours, people will limit their distractions and focus on finishing their work. However, if some companies don’t change their business models to account for one less work day, employees may be overloaded with work they cannot complete within a 4 day span. This could lead to potential output drop if nothing is done.
Potential increased employment
Companies that need people to work 5+ days a week will start hiring more people if the 4 day workweek is implemented. That will decrease unemployment, and more people will have the opportunity to work.
The effect on specific sectors.
The 4 day workweek won’t have a positive impact on very type of sector or industry. For example, healthcare is a field where you need to have constant coverage, and with the 4 day workweek, they can struggle to serve patients and maintain service levels. This in turn can reduce productivity and delivery, leading to higher costs and supply chain issues.
Increased GDP?
With that one extra day off, people can go shopping and buy more products. This can help raise the U.S. GDP, as long as output still continues to grow without the one less day. With more employment as well people have more disposable income, which could go towards buying more goods and spending.
There are many more factors that have an effect on the U.S. if we decide to implement a 4 day work week. But, if companies control their output and produce at high levels, a 4 day workweek may not be a bad idea.