NZ Must Implement a Four-day Work Week | The Jackal

22 Jul 2025

NZ Must Implement a Four-day Work Week

New Zealand finds itself at a critical juncture. With productivity growth stagnating and our brightest minds departing for greener pastures abroad, the time has come for bold shift in policy direction. The solution may be counterintuitive: working less to achieve more through the implementation of a four-day working week.


Today, RNZ reported:

 
Four-day work week reduces burnout and improves job satisfaction - study

Working a four day week reduces burnout and improves job satisfaction, a new study has found.

The research out of Boston College in the United States tested the effect of reducing employees hours to a four-day week with no reduction in pay.

The study held six-month trials reducing the working hours for 2896 employees across 141 organisations in Australia, Canada, New Zealand, the UK, Ireland and the USA.

The outcomes of the trials were then compared with 12 control companies that did not transition to the shorter work week.

The researchers found that employees with a reduction of eight hours or more per work week self-reported experiencing larger reductions in burnout and improvements in job satisfaction and mental health, as compared with those at companies that maintained a five-day work week.

A small change in physical health was also seen, but the researchers said they expected this was less significant because changes in physical health take time to manifest.

 
The international evidence is compelling and mounting. Belgium became the first country in Europe to legislate for a four-day week in 2022, with Belgian employees winning the right to perform a full workweek in four days instead of the usual five without loss of salary. Microsoft Japan's pioneering trial delivered remarkable results, with overall employee productivity boosted by 40%. Across multiple studies, almost half of respondents said productivity improved either slightly or significantly, with the vast majority of organisations expressing strong interest in continuing such arrangements.

These overseas cases demonstrate a fundamental truth that traditional workplace orthodoxy has long resisted: productivity is not merely a function of hours worked but of focused, engaged, and well-rested human capital. Countries from Spain, Iceland and South Africa to the United States, Germany and Italy are implementing trials and witnessing tangible benefits including reduced healthcare costs, lower employee turnover, and enhanced recruitment capabilities.

New Zealand's productivity crisis demands urgent attention. The world has been experiencing a productivity slowdown, from which New Zealand has not been exempt, and this matters because sustainable improvements in our living standards depend upon our productivity. Recent Treasury analysis reveals the stark reality facing our nation: when an economy fails to become more productive, real wages stagnate and living standards suffer.

New Zealand Productivity

The National-led government's approach to addressing this challenge has been fundamentally misguided. Rather than investing in innovative workplace policies that could enhance both productivity and worker wellbeing, we've witnessed a regression towards policies that actively undermine both. The dismantling of fair pay agreements, weakening of worker protections, and pursuit of austerity measures that reduce public investment in productivity-enhancing infrastructure represent a backwards step that will inevitably worsen our competitive position.

These regressive policies have created a demoralising environment for New Zealand workers. Employment law changes that strip away hard-won rights, combined with wage policies that fail to keep pace with inflation, send a clear message: that worker wellbeing and prosperity are secondary considerations to short-term cost-cutting measures. This approach is economically self-defeating, as it not only means less revenue circulating within the economy, it also drives our most talented individuals offshore where they can access better working conditions, higher wages, and more progressive employment practices.

The brain drain accelerating under current policies represents not merely individual career decisions but a national crisis of human capital flight. When our best and brightest seek opportunities in jurisdictions that value work-life balance, offer competitive remuneration, provide better housing opportunities, and implement forward-thinking workplace innovations like four-day working weeks, New Zealand loses the very talent we've trained and need to drive productivity improvements and economic growth here in Aotearoa.

A four-day working week represents more than workplace reform; it constitutes a strategic economic intervention. By reducing working hours while maintaining productivity levels, we create conditions for enhanced innovation, reduced stress-related health costs (particularly relevant as our workforce ages) and improved retention of skilled workers. The model offers particular appeal to younger generations who increasingly prioritise workplace flexibility and well-being alongside traditional career advancement.

The path forward requires political courage to challenge conventional wisdom about workplace organisation. Rather than pursuing policies that treat workers as expendable and a cost to be minimised, we must embrace approaches that recognise human potential as our nation's greatest asset. A four-day working week pilot programme, implemented across selected public and private sector organisations, could demonstrate the productivity gains and wellbeing improvements that international evidence suggests are achievable.

New Zealand cannot afford to persist with outdated workplace models whilst competing nations embrace innovative approaches to human capital management. The choice is stark: continue with regressive policies that drive talent offshore and suppress productivity growth, or adopt progressive workplace reforms that enhance both economic performance and citizen wellbeing. The four-day working week offers a tangible pathway towards reversing our current trajectory and building a more prosperous, equitable future for all New Zealanders.