4-Day Work Weeks WITHOUT Affecting Pay
While some think AI will take everyone’s jobs, there are others out there that think it will make our jobs easier. One of those people is JPMorgan CEO Jamie Dimon, who thinks the next generation of workers will be working 3.5 days a week due to AI. “Your children will live to 100 and not have cancer because of technology and they’ll probably be working three and a half days a week” Dimon stated in an interview with Bloomberg.
Goldman Sachs made a prediction that 300 million full time jobs will be affected by AI, this doesn’t mean replaced however. According to a recent study by Autonomy, AI could help millions of workers switch over to shorter work weeks by as early as 2033. This is due to the projected productivity increase due to AI, which could reduce work weeks from 40 to 32 hours without affecting the pay.
4-Day Work Weeks Makes Sense With AI
With more getting done per week, employees would logically expect to either get paid more or work less. Which is why 4-day work weeks adoption doesn't seem like that “crazy” of an idea for the near future. AI is able to help with the “busy work”, allowing human employees to focus on other areas of their jobs. For example AI can take care of data entry or sorting, freeing up an employee to be able to instead focus on more creative or complex assignments. AI customer service chatbots as well as virtual assistants are also helping free up time. “The shift not only improves customer service quality but also enhances job satisfaction for those who no longer have to deal with repetitive tasks,” said one expert. I personally agree, as I can’t stand doing busy work!!!
Case Studies
Studies have shown that 4-day work weeks have significant benefits on employees mental and physical health.
Study #1: South Africa Shows How This Affects Working Moms
In the Four-Day Week Global study in South Africa which took place for a period of six months from March 2023 to August 2023, a total of 60% of the employees in the study reported an increased ability to combine working with childcare responsibilities.
92% of the 61 participating companies in the study said they plan to retain the new schedule, and 90% of employees said they prefer it. When the employees currently working for the companies that retained 4-day work weeks were asked how much of a pay increase they would need to consider going to a new job with 5-day work weeks, 51% said a 21-50% increase in salary would be needed to switch back to 5-day weeks. 13% said no amount of money would induce them to go back. This could be due to the data taken after the study where 38% of the employees showed less stress and 71% had reduced levels of burnout. The 4-day work week also reduced the numbers of sick days taken by 65%. All while increasing productivity for the company.
Study #2: Japan's Microsoft Study
In Japan they had a 4-day work week study which mainly focused on Microsoft Japan and Panasonic. Microsoft Japan reported a 40% increase in productivity, 25% decrease in electricity consumption, and 92% of the employees in the study reported liking the shorter work week. Panasonic reported significant improvements in employee well-being, increased efficiency, and reduced office space related costs.
Stocks That Could Benefit From 4-Day Work Weeks
This is a trading blog, so of course we should go over what stocks and sectors could benefit from 4-day work weeks being implemented by 2033!!
Utility Companies
- Reasoning: Decreased electricity consumption (the Japan study mentioned above showed a 25% decrease) can positively impact utility companies by lowering operating costs and potentially leading to lower electricity rates for consumers. This could attract more customers and improve their bottom line.
- Examples:
- Exelon (EXC): A leading US utility company with a strong track record and diversified portfolio.
- Duke Energy (DUK): Another major US utility with a focus on renewables and energy efficiency.
- Enel (ENEL): An Italian multinational utility company with a global presence and commitment to clean energy.
Hospitality, Leisure and Entertainment Companies
- Reasoning: Increased free time due to a 4-day work week could lead to higher demand for leisure activities, dining out, entertainment options, and travel.
- Examples:
- Marriott International (MAR): A global hotel chain with a diverse portfolio of brands and locations.
- Carnival Corporation (CCL): A major cruise line operator with a strong brand and diverse fleet of ships.
- Netflix (NFLX): A leading streaming service provider with a large library of content and growing global subscriber base.
Renewable Energy Companies
- Reasoning: A 4-day work week could lead to increased awareness and focus on environmental issues, driving demand for renewable energy sources like solar and wind power.
- Examples:
- NextEra Energy (NEE): A leading US energy company with a focus on renewable energy development and clean energy solutions.
- First Solar (FSLR): A major solar panel manufacturer with a strong track record and innovative technologies.
- Orsted (DOGEF): A Danish renewable energy company with a global presence and commitment to offshore wind power.
Smart Home and Automation Companies
- Reasoning: With more time spent at home due to a 4-day work week, demand for smart home devices and automation technologies could increase. This includes smart thermostats, lighting systems, and energy management solutions.
- Examples:
- Honeywell International (HON): A diversified technology and manufacturing company with a strong presence in smart home and building automation solutions.
- Schneider Electric (SU): A global leader in energy management and automation, offering a wide range of smart home products and services.
- Amazon (AMZN): With its Alexa voice assistant and smart home ecosystem, Amazon could benefit from increased demand for voice-controlled devices and automation solutions.
Retail and E-commerce Companies
- Reasoning: People with more free time may spend more time shopping online and in brick-and-mortar stores. This could benefit retailers and e-commerce platforms.
- Examples:
- Target (TGT): A major US retailer with a strong online presence and focus on omnichannel shopping experiences.
- Amazon (AMZN): With its dominant e-commerce platform and expanding retail footprint, Amazon could significantly benefit from increased consumer spending.
- Macy's ($M): Macy's just got a $5.8 Billion offer for a buyout (click for full article). They are a profitable retail company with an impressive Real Estate Portfolio.
