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Remote work, a trend that gained prominence during the coronavirus pandemic, appears to be here to stay in the U.S. labor market, economists say.
Nick Bunker, director of North American economic research at job site Indeed, said the work-from-home revolution is “one of the biggest shifts in the US labor market in the last 20 years.”
“It’s not slowing down,” he said, “and it’s probably going to continue for a long time to come.”
The term remote work includes workers who work from home full-time as well as those in so-called “hybrid” work arrangements, in which companies ask employees to work in the office a few days a week and from home the rest of the time.
Economists say such arrangements were rare before the pandemic.
But they surged during stay-at-home orders early in the pandemic.
Economists said remote work opportunities, while down from their peak, appear to be stabilizing at levels well above pre-pandemic levels.
According to data from WFH Research as of July, the number of weekday days people work from home has remained stable at 25-30% since the beginning of 2023, more than three times higher than before the pandemic.
According to data from Indeed, as of June 30, the share of online job ads seeking remote or hybrid work also appears to have remained steady at just under 8%, roughly three times higher than in 2019.
“Remote work is not going away,” Nick Bloom, a Stanford University economics professor who studies workplace management practices, recently told CNBC.
Why remote work survived
Economists say remote work has endured primarily because it benefits both workers and employers.
For example, Bloom’s research suggests that workers value hybrid work as much as an 8% pay increase.
“For a lot of job seekers, this is very important,” making it hard for employers to “take away” that aspect of the job, Bunker said.
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Economists say remote work also benefits companies.
For example, downsizing your office space could save you money on real estate, and remote work could also broaden your pool of potential candidates when hiring, Bunker said.
Bloom said workers who are able to work remotely tend to leave jobs less often because they value the option, resulting in reduced spending for companies on hiring, recruiting and training.
Of course, not all jobs can be done from home: As of July, about 36% of employees with jobs that could be done remotely were instead working in the office full time, according to WFH Research.
According to a 2023 ZipRecruiter survey, companies cited negative aspects of remote work, such as a reduced ability to observe and monitor employees and less mentoring from colleagues, cited by 45% and 42% of employers, respectively.
Banker said a downturn in the economy could lead employers to scale back remote work, reducing workers’ leverage.
But he said he doubts many people will do so, given the economic benefits of remote work mentioned above, and added that such a move would likely further dampen morale and productivity at an already low time.
