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

10 policies to drive Australian productivity higher

Which country will be the next China?

Most Australians live better than the Rockefellers

banner

Most viewed in recent weeks

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Latest Updates

Shares

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Superannuation

When you can withdraw your super

You can’t freely withdraw your super before 65. You need to meet certain legal conditions tied to your age, whether you’ve retired, or if you're using a transition to retirement option. 

Retirement

A national guide to concession entitlements

Navigating retirement concessions is unnecessarily complex. This outlines a new project to help older Australians find what they’re entitled to - quickly, clearly, and with less stress. 

Property

The psychology of REIT investing

Market shocks and rallies test every investor’s resolve. This explores practical strategies to stay grounded - resisting panic in downturns and FOMO in booms - while focusing on long-term returns. 

Fixed interest

Bonds are copping a bad rap

Bonds have had a tough few years and many investors are turning to other assets to diversify their portfolios. However, bonds can still play a valuable role as a source of income and risk mitigation.

Strategy

Is it time to fire the consultants?

The NSW government is cutting the use of consultants. Universities have also been criticized for relying on consultants as cover for restructuring plans. But are consultants really the problem they're made out to be?

Sponsors

Alliances

© 2025 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.