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Economists say the trend of remote work, which has come to the fore during the Covid-19 pandemic, appears to have become an ingrained fixture in the U.S. labor market.
Nick Bunker, director of North American economic research at job site Indeed, said the work-from-home revolution is “one of the major shifts in the U.S. labor market over the past few decades.”
“It’s still kicking,” he said. “It’s probably going to be around for a long time.”
The remote work label includes employees who work from home full-time and so-called “hybrid” arrangements, where companies may ask employees to work in the office a few days a week and work from home the rest of the time.
Economists say such arrangements were rare before the pandemic.
Early in the pandemic, however, they became prolific amid stay-at-home orders.
Economists say that while remote work opportunities have declined from their peak, they appear to have stabilized at levels well above pre-pandemic levels.
Number of days worked from home during the work week has remained stable Since the start of 2023, that number has ranged from 25% to 30%, more than three times what it was before the coronavirus outbreak, according to WFH Research data through July.
There also appears to be an increase in the share of online job listings advertising remote or hybrid jobs. Leveling off That was just under 8%, about three times the level in 2019, according to Indeed data as of June 30.
“Remote work is not going away,” Nick Bloom, a Stanford University economics professor who studies workplace management practices, recently told CNBC.
Why remote work endures
Economists say remote work is here to stay in large part because it benefits both workers and employers.
For example, Bloom’s research shows that employees value hybrid work as much as they value an 8% pay increase.
“This is very important to a lot of job seekers,” Bunker said, making it difficult for employers to “take away” this aspect of the job.
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Economists say remote working can also be a profitable arrangement for businesses.
For example, they might save money on real estate by downsizing their office space. Bunker said working remotely can also open up a pool of potential candidates during the recruiting process.
Employees who can work remotely also quit less frequently because they value the arrangement, which reduces the company’s spending on recruiting, recruiting and training, Bloom said.
Of course, not all jobs can be done from home. According to WFH Research, as of July, about 36% of employees could complete their work remotely and instead worked full-time in the office.
Companies cited disadvantages of remote working, including a reduced ability to observe and monitor employees and reduced peer mentoring, with 45% and 42% of employers respectively citing 2023 ZipRecruiter data. poll.
Bunker said the recession may prompt employers to reduce remote work, causing workers to lose leverage.
However, he questions whether many people will do so, given the financial benefits of remote working mentioned above. Additionally, he added, the move could reduce morale and worker productivity at a time when morale is already low.
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