Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 628

Will we choose a four-day working week?

The idea of a four-day work week is beguiling. Maybe we are feeling burned out or perhaps we are imagining what life could be like if AI does 20% of our work. The promise sounds fabulous: work less, live more and magically get the same or even greater productivity. It sounds like a more balanced, more human future.

Those who champion the four-day work week make a big assumption: namely that people can achieve the same outcomes in around 30 hours that they get currently in around 38 hours. This assumption is necessary because the beguiling big idea behind the four-day work week is that salaries will stay the same.

Advocates often point to trials. A six-month multinational study found that shorter weeks reduced burnout and improved health without impacting performance. A pilot within Australasia saw most participating organisations say that they would adopt the model long-term. The problem is that in a trial, most participants know they are being observed and measured and that carrot-and-stick of “make this work or lose it” is powerful. Whether the productivity gains persist for the long term is still to be seen. Whether they would persist if a four-day week was a permanent entitlement, without the discipline of trial conditions, seems unlikely. And it hasn’t yet been tested in many diverse environments beyond offices with laptops and deadlines.

Many jobs cannot be made more productive while shrinking the hours of work. An ICU nurse cannot work for 4 days instead of 5 and achieve the same levels of patient care. A childcare centre cannot run with 20% fewer staff on a Friday. An essential part of these roles is presence. To reduce hours without reducing service requires more staff.

Despite many trials in the US, a four-day week for school children has had mixed academic results. Student learning declines significantly unless the school day is made much longer (keeping the overall contact hours per week similar). In schooling, like care roles, hours cannot be compressed while hoping for the same outcomes.

And the same goes for construction, retail, hospitality or transport. An hour of labour is exactly that: an hour. By contrast, most high-profile trials of the four-day week have been run in white-collar workplaces, where tasks are more flexible.

Then there’s money. Many workers could already choose to reduce their hours. Some do, but most don’t. You can’t blame them. Housing affordability in Australia is at its worst levels in history. The national house price-to-income ratio now sits about eight. In Sydney it’s more than 13. The idea that twenty- and thirty-somethings will willingly trade income for leisure is fanciful. Even if productivity gains allowed salaries to remain unchanged on a four-day schedule, the incentive to work five days to save faster for a house deposit would be compelling.


Source: ANZ CoreLogic Housing Affordability Report, Nov 2024. Data: CoreLogic, ANU.

The toughest obstacle may not be structural or economic but our own selves. A century of productivity growth should have freed us to enjoy much shorter weeks already. Our great-grandparents lived on far less real income, often without holidays, cars or early home ownership. Their ‘normal’ would strike us as austere. Yet rather than reducing work, our response to rising productivity has been to choose a higher standard of living. Consumption has expanded to fill our earning capacity.

Rising prosperity is one of the great achievements of modern economies. But it does reveal the tension at the heart of the four-day week. Even if AI delivers us enough economy-wide productivity advances to allow everyone to work four days at the same pay they get now for five days, will we choose that? How long will it be before our lifestyle expectations ratchet up again? Will our grandchildren view space tourism as casually as we view a trip to Bali?

The popularity of the four-day week speaks to a yearning for more balance, rest and humanity in our lives. It’s not a bad idea. But it is an idea whose time has not yet come. Until more people actually choose a shorter week over greater consumption, we should not consider a wholesale restructure of our society, offices and schools.

That day may come. We have seen patterns change throughout history. The idea of a weekend came out of manufacturing early in the twentieth century. The 8-hour day was an innovation as was the 40-hour week. But, for now, the four-day week feels a long way off.

 

Professor Jenny George is Dean of Melbourne Business School and Co-Dean of the University of Melbourne's Faculty of Business and Economics.

 

  •   10 September 2025
  • 5
  •      
  •   
5 Comments
JohnS
September 11, 2025

Over 25 years ago, a friend, who worked at a private senior high school told me about their introduction of a four day school week.
Half of the staff took each Wednesday off at home. The other half of the staff came to school. It was allocated so that half of the Maths faculty was there each Wednesday, and similarly for each of the other faculties.
Students were not expected to turn up for school on Wednesday, but could come in if they wished. This was consultative time, where those staff who were at school would give one on one assistance in answer to student's questions.
Each of the remaining school days were extended by an hour. So students effectively got the same number of face to face teaching time.
It worked brilliantly. And because the students were all over 16 years of age, the parents didn't need to worry about supervision at home.

Kim
September 11, 2025

Some years back South Australian Local Councils introduced a 9 day fortnight. Staff "were supposed to "work" 70 hrs. per fortnight. Judging by the results, work piled up in the streets, and clerical staff still didn't push themselves. I worked in private enterprise - had 1 day a month as a rostered day off. Didn't work for me as my workload remained the same but I needed stay in the office longer each day to keep on top of things. Local Government and the Public Service have workloads that are light with little pressure - I spent a 3 year period in the State Public Service after "retiring" and it was a breeze. No pressure, and no PKI's.

john
September 12, 2025

Had similar experience

Paul
September 12, 2025

Endorse the comments about the public sector. Totally inappropriate industrial relations laws and union solicitors happy to obfuscate and defend the indefensible mean that the lazy and irresponsible cannot be sacked or sanctioned in any way. There is almost no accountability in the public sector. ACCOUNTABILITY is what is missing from the debate about productivity. This craven government won't go near the issue of accountability-- explicitly excluded it from "the round table'' but they keep expanding the public sector.

Austin
September 14, 2025

Thanks for the article. Note however the 4 day week does not need to carry the same pay, indeed it may be less. Rather it depends on whether standards of living have improved. The biggest barrier to a successful 4-day working week is (still worsening) wealth inequality.

 

Leave a Comment:

RELATED ARTICLES

Was life really better in the good old days?

Who gains in an AI-supercharged economy?

10 policies to drive Australian productivity higher

banner

Most viewed in recent weeks

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

High quality businesses are on sale

Beneath the dominance of the ASX's largest stocks, much of the market has been left behind. High-quality companies are now trading at levels rarely seen, offering opportunities for investors willing to look deeper.

The strange effect of the 30% minimum capital gains tax

The 30% minimum tax on capital gains sits at the heart of the budget's proposed reforms. Yet the mechanics reveal anomalies that introduce unexpected distortions that raise questions about its design.

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Ranking three common retirement strategies

The defining challenge of retirement isn't just about building wealth, it's about converting your lifetime savings into sustainable income. A holistic understanding of different strategies can improve long-term outcomes.

Latest Updates

Planning

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Lithium's latest drop and what it means for ASX investors

Lithium's latest sell-off has punished ASX miners as prices remain hostage to shifting expectations. The key challenge is navigating a market prone to extreme volatility despite a strong case for the long-term demand outlook.

Investment strategies

CGT reform and fund turnover: who really feels the impact?

The implications of CGT reform are far and wide. As the 50% discount gives way to inflation indexation, turnover and return profiles may become critical drivers of after-tax performance. Some strategies face a far greater hit.

Superannuation

Super was built for a very different Australia

Our retirement system was built around assumptions that no longer hold. Lower homeownership, longer lifespans and changing expectations are exposing cracks that policymakers and super funds need to address.

Retirement

Retirement in reality - 4 months in

Many people spend years planning financially for retirement but little time preparing for what comes next. Four months in, here are the surprising lessons I've learnt on finding purpose, social connection and healthy habits.

Investment strategies

After the Budget, Australia needs its own definition of quality

As tax reforms reshape investment incentives, investors should rethink what quality investing means in the uniquely concentrated Australian market, where traditional frameworks may not translate as effectively.

Datacenters are the new shale oil

Why are tech giants pouring billions into datacentres when the economics look questionable? The most dangerous words in investing may be: "everyone else is doing it". Today's AI boom has striking parallels with the shale bust.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.