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The Economics of the Four-Day Workweek

The Economics of the Four-Day Workweek

By Scott Lachut on July 30, 2009

As part of its year long trial dubbed the “Working 4 Utah” initiative, the Utah state government placed more than 17,000 of its employees on a four-day workweek, increasing workdays from eight to ten hours. The program, which begin in August of 2008, has saved the state an estimated $1.8 million over that time as a result of lower electrical bills. But beyond the economics, the initiative is having profound impacts on worker well-being – employees records show decreased health complaints, less stress and fewer sick days - and the environment as well – a simple shift in commuting schedules translates into less congestion on the roads and therefore less time spent idling in traffic.

Scientific American reports some of the telling statistics:

An interim report released by the Utah state government in February projected a drop of at least 6,000 metric tons of carbon dioxide emissions annually from Friday building shutdowns. If reductions in greenhouse gases from commuting are included, the state would check the generation of at least 12,000 metric tons of CO2—the equivalent of taking about 2,300 cars off the road for one year.

Though not everyone seems to agree on the benefits – citing increased fast food consumption and less time for exercise as two apparent drawbacks – the overwhelming response has been positive – 82 percent of workers are on board with the initiative. Still, it appears these numbers are enough for some. The cities of El Paso, Texas and Melbourne Beach, Florida, along with a General Motors’ plant in Lordstown, Ohio are moving to implement their own four-day models.

We have to wonder, are cubicles next?

[via Freakonomics]

[image via Tim Patterson on Flickr]

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Scott Lachut is PSFK’s Director of Consulting, working with a team of global researchers to provide leading companies with insights on the trends and innovation that are shaping the marketplace from both a consumer and business standpoint. His previous jobs resemble multiple chapters from Studs Terkel's "Working." Away from the computer his interests skew towards cooking and lawn games.

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TOPICS: Environmental / Green, Health & Wellness, Work & Business
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