Working from home (WFH) has become a significant part of the labor market, but recent data shows a slight downward trend in WFH rates. This trend has raised questions for both workers and employers about the future of remote work. While some believe that the decline in WFH rates indicates a return to office work, others argue that WFH is here to stay.
The Census Bureau’s Household Pulse Survey has shown a decrease in the percentage of households with someone working remotely at least one day a week. This decline has been attributed to employers pushing for staff to return to the office. However, Stanford’s Nick Bloom, a leading researcher on WFH, believes that WFH is a permanent fixture in the future of work. He points to data showing that the return to the office has stalled out and that WFH rates have actually increased in recent months.
Bloom’s analysis of office occupancy rates, measured by keycard swipes, supports his claim that WFH is not on the decline. While office occupancy has increased from its pandemic low, it has not reached pre-pandemic levels. Bloom’s survey data also shows that the percentage of workdays happening from home has increased compared to pre-pandemic levels.
The rise of WFH has been surprising to many labor economists, as it was not widely predicted to become such a significant part of the labor market. Bloom is a strong advocate for WFH, stating that remote work has been beneficial for almost everyone involved. On the other hand, Wharton School’s Peter Cappelli sees underlying conflict between employees and employers regarding WFH.
There are still unresolved issues surrounding WFH, including productivity, innovation, career pathways, gender differences, onboarding of new employees, and managerial oversight. As WFH becomes more embedded in the economy, these issues will need to be addressed to prevent conflicts between workers and employers.
Overall, while WFH rates may be showing a slight downward trend, the future of remote work remains uncertain. It is clear that WFH has become a significant part of the labor market, and both workers and employers will need to adapt to this new reality.
