Four-day workweek possible with improved productivity

VANCOUVER—This Labour Day, workers and employers should push for improved productivity, the key to a four-day workweek and more work-from-home opportunities, suggests an article released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. “The pandemic has encouraged workplace innovations that can continue into the future if workers become more productive,” said Steven Globerman, resident scholar at the Fraser Institute and author of Four-Day Work Week and Work-From-Home Initiatives Hinge on Improving Productivity.

Unfortunately, recent productivity data suggests the Canadian economy is underperforming this goal

“Productivity refers to our ability to transform inputs like raw materials and labour into demanded goods and services. Improving our ability to transform inputs into outputs is how we increase our standard of living,” explained Globerman. Due to COVID-19 safety protocols, many more people worked from home, and some saw their workweek shorten. Now many employers and workers want to continue these work practises even as safety measures are becoming less necessary. According to recent research, if labour productivity growth averages 2 per cent per year from 2018 to 2030, Canadian workers in 2030 could work a four-day workweek year-round while enjoying a higher living standards. Unfortunately, recent productivity data suggests the Canadian economy is underperforming this goal. For instance, as the Canadian economy reopened in the second half of 2020, labour productivity actually declined and continued to into the first quarter of 2021. Notably, the success of these innovative workplace practices and achieving the 2 per cent per year productivity target requires increased investments in new machinery and equipment, software, and other productivity-enhancing assets. Unfortunately, 8 of Canada’s 15 industrial sectors recorded declines in these very investments between 2015 and 2019. “Labour and business leaders alike should join together to encourage governments across Canada to help create a more competitive environment for investment in the tools that workers need to increase productivity,” Globerman said. Media Contact: Steven Globerman, Resident Scholar, Fraser Institute To arrange media interviews or for more information, please contact: Bryn Weese, Fraser Institute bryn.weese@fraserinstitute.org

Fraser Institute——Bio and Archives

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.

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