Why labor economists say the remote work ‘revolution’ is here to stay

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Remote work has surged during the pandemic era, but the trend, born out of public health imperatives, is now entrenched in the U.S. job market and likely to remain entrenched, according to labor experts. is said to be high.

Nearly 10% of online job searches in September referred to “remote work,” a nearly six-fold increase from September 2019 before the Covid-19 pandemic, according to a recent report by Indeed and Glassdoor. I’m here.

Employers are also advertising work-from-home opportunities more frequently. Nearly 9% of online job listings do, according to the report, and he has tripled in the same period. On another job site, ZipRecruiter, he saw a 4x increase in job postings mentioning remote work, and his share of the total increased to 12%.

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“This will be a lasting feature of the employment landscape,” said Aaron Terrazas, chief economist at Glassdoor.

Pandemic has spurred a work-from-home ‘revolution’

Working from home wasn’t just a pandemic-era phenomenon. According to data compiled by economists José María Valero, Nicholas Bloom, Shelby Bachman, and Stephen Davis, the percentage of his workers who are remote will double every 15 years he does until 2020. Studied remote work.

However, the subsequent increase during the pandemic is comparable to the 30-year pre-pandemic growth. Said.

During peak hours, more than 60% of the total working days were at home, largely as a result of stay-at-home orders. That percentage has fallen to 29.4% of workdays, but researchers expect the decline to stall.

Many of the shifts to working from home ‘will continue long after the pandemic is over,’ say Valero, Bloom and Davis I have written April 2021. They expect people to be at home about 20% of full working days in the post-pandemic economy. This is about four times the pre-Covid levels.

Nationally, the percentage of employees who have worked from home has stabilized at around 29% over the past year. according to For the new lending tree survey.

“The pandemic has revolutionized the way we work,” said Bloom, an economist at Stanford University. can do. I have written “But like all revolutions, this one is difficult to navigate.”

Why it’s hard to “put the genie back in the bottle”

Worker quote One of the most important factors in favor of remote work is time savings. This means no commuting, more flexible work schedules, and less time getting ready for work.

Working from home two days a week on average saves employees 70 minutes of commute time per day Bloom SaidAccording to Bloom, nearly half of the time saved (30 minutes) is spent doing more work, which benefits employers in the form of a more productive workforce. Overall, remote work equates to about a 4% increase in working hours over a 40-hour workweek.

employee Evaluate the benefits of remote work Similarly, you’ll get a salary increase of roughly 5% to 7%. As a result, companies can theoretically reduce their labor costs by a similar amount, Bloom said.

In addition, companies that offer remote work have improved employee retention, a dynamic that allows employers to recruit talent from across the country rather than narrow geographic pools, said Julia Pollak, chief economist at ZipRecruiter. said.

“People really, really want remote work,” Pollack said, adding, “It’s hard to put the spirits back in the bottle.”

‘Significant Fluctuations’ in Remote Work Opportunities

That said, most jobs in the US economy cannot be done remotely.

About 37% of jobs in the US can be done entirely from home. according to In a 2020 study by University of Chicago economists Jonathan Dingell and Brent Niemann.

As of fall 2022, almost 14% of employees will be working from home full-time, according to survey data compiled by Barrero, Bloom, Buckman, and Davis.

Dingel and Niemann said there is a “huge variability” in who can and cannot work from home, based on factors such as occupation and geography. For example, most jobs in finance, business management, professional and scientific services can be done from home. Conversely, few workers in agriculture, hotels, restaurants or retail can work from home.

People really want remote work. It’s hard to put the genie back in the bottle.

Julia Pollack

Chief Economist at ZipRecruiter

People who can’t work from home are disproportionately low-income, don’t have college degrees, and are people of color, Dingell and Niemann said.

“The advantage of a sustained shift is [work from home] It feels broad, but it mostly goes to people with higher education and higher salaries,” says Valero, Bloom and Davis. I have written.

Some employees see benefits from being in the office, including face-to-face collaboration, socializing, and the boundaries between work and personal life.

There may also be unintended effects on diversity. For example, women are more likely than men to work remotely, about 66% vs. 54% respectively. according to To Zip Recruiter.This may help recruit more women, but it also raises concerns, Bloom Saidbecause evidence suggests that working from home while co-workers are in the office can “do a lot of damage to your career.”

It’s also unclear how firms might readjust and become less accommodative if the job market cools. The Federal Reserve is raising borrowing costs to slow the economy and curb persistently high inflation. As a result, the job market is also expected to cool and workers may lose their jobs. bargaining power they currently enjoy.

https://www.cnbc.com/2022/12/01/why-labor-economists-say-the-remote-work-revolution-is-here-to-stay.html Why labor economists say the remote work ‘revolution’ is here to stay

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