New Economic Foundation points to example of Utah, where four-day working week increased productivity and saved energy

This article is more than 10 years old

This article is more than 10 years old

British workers may be toiling hard to ward off unemployment, but the future could bring an average of only 21 hours a week chained to their desk.

A report by the influential thinktank, the New Economic Foundation, says over-consumption, rising unemployment, increasing inequality and deteriorating work-life balance can be tackled by radically altering working life.

Reducing the working week could also defuse the pensions time bomb by ensuring employees are healthy enough to work later in life.

Citing the example of Utah, the study shows how the US state's decision in 2008 to place all public-sector workers on a four-day week saved energy, reduced absenteeism and increased productivity.

The report argues that 21 hours a week is already close to the average length of time spent in paid employment.

"A lot of this is already happening," said the report's joint author, Andrew Simms of the NEF. "Job sharing is common practice … It's going to be increasing. Maybe we'll have less income and more time.

"Other than the benefit of having more time, what will happen is a reduction in inequality and the potential to be better-quality friends, partners and parents engaging more with communities.

"There is this issue of people retiring and their lives collapse. So this is a good opportunity for people to fulfil themselves. We are not saying this should be imposed. We're suggesting this should be more of a norm."

A spokesman for the Institute of Directors suggested that Britain's bosses are already increasingly offering "flexible working arrangements".

"Work/life balance for employees is something our members take seriously because they see benefits to people's lives," an IoD spokesman said. But he added that many businesses need continuity, which an increase in part-time labour would destroy.

The advent of personal computers was meant to have ushered in a new age of leisure outside the office. NEF's report shows that many people work longer hours than 30 years ago. Since 1981 two-adult households have added six hours to their combined weekly workload.

A separate survey last week by jobs website Monster showed that of nearly 2,400 polled, 37% said their work gets in the way of their relationships while 23% said they feel they are expected to put their work ahead of their home life.