If productivity increases by 2%, each year, between 2018 and 2030, the average Canadian worker could make more money, while having a three\u002Dday weekend
The combination of increasing wages with reduced working hours suggests “that Canadian workers prefer a combination of higher real compensation and more leisure time rather than taking all of their higher average hourly compensation in the form of either increased income or increased leisure time.”If Canadian workers had sustained their $54,799 income, without any salary increases between 2000 and 2018, they would have cashed out with 191 extra hours off.
In the real world though, getting a full year of a four-day work week, and an 18 per cent jump in wages, doesn’t quite pan out: wages would have had to increase by 33 per cent between 2000 and 2018 in order to receive $61,691 in salary on a four-day work week. Labour productivity would also have had to increase in that 18-year period, by 33 per cent.
In 2030, if there is a two per cent annual increase in productivity, that ought to translate into an average salary of $78,239 if sticking to a five-day work week. A four-day work week, under this scenario, would equal a 341-hour reduction, which in turn would mean a $15,648 reduction in salary, for a total average annual salary of $62,591. Clemens said the only way to modify work weeks is to improve productivity, and decide on a balance between leisure and salary.
“There was a time when we worked seven days a week, and there was a time when we worked six days a week, and now we work five days a week and the only way we’ve been able to do that and still increase our living standards by an unimaginable rate over the last 150 years is because we’ve become more productive.”
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