Remote Work and the Labour Market

How the shift to remote and hybrid work since 2020 has changed where people live, how they work and what employers pay.

Before 2020, only a small share of workers regularly worked from home. The COVID-19 pandemic forced a sudden, massive experiment in remote work. Much of it has lasted, reshaping labour markets.

How widespread is it?

Research by economist Nicholas Bloom and colleagues tracking U.S. workers found that the share of paid workdays done from home jumped from around 5 percent before the pandemic to over 50 percent in spring 2020, then settled at around a quarter to a third in the years after. Hybrid work, splitting the week between home and office, became the most common arrangement for office workers.

Effects on productivity

Evidence is mixed:

A randomised study by Bloom and co-authors at a large Chinese travel company, published in 2024, found that hybrid work had no effect on performance or promotions, while reducing the number of employees quitting by about a third.
Some studies of fully remote work found productivity declines, possibly from weaker communication and mentoring.
Effects vary by job type, experience and how well work is organised.

Effects on workers and cities

Commuting: remote workers save time and money, a benefit many value highly.
Where people live: some moved to cheaper areas further from city centres.
City centres: office use fell, affecting downtown shops and commercial property.
Wider hiring: employers can recruit from a larger geographic area.

Remote work and disability

For many disabled workers, including some blind people who find commuting difficult, remote work removes a major barrier to employment. Research in the United States found that employment among people with disabilities rose to record levels after 2020, and many researchers linked part of the rise to the spread of remote work.

Trade-offs

Remote work offers flexibility and time savings but can make mentoring, collaboration and career development harder, especially for young workers. Many organisations continue to adjust their policies.

Thinking remote work suits every job

Most jobs, such as in health care, retail, manufacturing and transport, cannot be done from home. Remote work mainly benefits office and knowledge workers, which can widen gaps between different types of workers.

Key takeaways

Remote work surged in 2020 and settled at a much higher level than before.
Hybrid work is now common for office workers.
Productivity evidence is mixed, but hybrid work reduced quitting in one major study.
Remote work helped raise employment among disabled people but suits only some jobs.