The Fraser Institute report says Canadians could work fewer hours but still maintain their standard of living – but it depends on one thing
However much you enjoy your job, wouldn’t it be nice to have more time to spend on leisure activities and loved ones?
Working fewer hours might be attractive to millions of Canadians but the loss of income is frequently a barrier to recalibrating the work-life balance. But what if you could work less while still maintaining the same income – or perhaps even more?
A new report finds that Canadians could switch to a four day week, with no loss of income or reduction in standard of living. But it means a boost in productivity.
The Fraser Institute research found that, with an increase in productivity of just 2% per year between 2018 and 2030, Canadian workers could enjoy more time away from work.
Income would not be adversely affected and assuming the 2% productivity growth was maintained, workers would enjoy an inflation-adjusted cumulative 1.5% increase in income.
“In light of the COVID lockdown, there’s been a lot of talk about a possible four-day work week in Canada, but to achieve a four-day work week where we actually work fewer hours while at the same time maintaining our current living standards, we need to be more productive,” said Steven Globerman, a Fraser Institute senior fellow and author of Reducing the Workweek Through Improved Productivity.
Productivity is affected by multiple factors including financial stress according to a 2019 survey.
Could it be done?
While the idea of working less for more income is attractive, could it actually be achieved or is a 2% productivity boost every year a pipedream?
The report found that, while productivity grew just 1.05% on average each year from 2010 to 2016, in earlier decades it was common for 2% increases.
“If governments pursue policies that encourage entrepreneurship and innovation, worker productivity will rise and Canadians will be able to enjoy more leisure time,” Globerman said.
The full report is at: https://www.fraserinstitute.org/sites/default/files/reducing-the-work-week-through-improved-productivity_0.pdf
