The Covid-19 pandemic brought remote work to the forefront of the U.S. labor market, but economists now see it as a permanent fixture. Nick Bunker, economic research director for North America at Indeed, describes the work-from-home revolution as a significant shift that is here to stay. The concept of remote work includes both full-time home-based work and hybrid arrangements, where employees split their time between the office and home. While rare before the pandemic, these arrangements became prevalent during the early days of stay-at-home orders.
While remote work opportunities have decreased slightly from their peak, they are holding steady well above pre-pandemic levels. The percentage of days worked from home remains at 25%-30%, which is more than triple the pre-Covid rate according to WFH Research data. Additionally, the share of online job listings offering remote or hybrid work is around 8%, three times higher than in 2019 based on Indeed data. This stability indicates that remote work is not going away anytime soon.
Economists highlight the benefits of remote work for both workers and employers. Research by Nick Bloom from Stanford University suggests that workers value hybrid work arrangements as much as an 8% raise. This preference among job seekers makes it challenging for employers to eliminate remote work options. On the other hand, businesses benefit from remote work financially by saving on real estate costs and expanding their pool of potential candidates during recruitment.
Not all jobs are suitable for remote work, as indicated by the 36% of employees with remote-capable jobs who were working in the office full time as of July. Companies have cited challenges such as reduced supervision and peer mentoring as downsides of remote work. Despite these obstacles, the financial advantages and worker preferences associated with remote work make it a valuable option for both parties.
An economic downturn could potentially lead employers to rethink remote work, particularly if workers lose bargaining power. However, the financial benefits and employee satisfaction linked to remote work suggest that most companies will continue to offer these arrangements. Pulling back on remote work could harm morale and productivity, especially during times of low morale. Therefore, remote work is likely to remain a significant aspect of the U.S. labor market for the foreseeable future.