Minnesota among top U.S. states in remote work adoption – report
MINNESOTA, UNITED STATES — A new report from the Federal Reserve Bank of Minneapolis has revealed that Minnesota is among the top states embracing remote work arrangements.
The study, based on data from the U.S. Census Bureau’s Household Pulse Survey conducted between January and October 2023, found that 34% of Minnesotans work remotely at least one day per week. This places the state in a tie for seventh with Virginia and well above the national average.
The pandemic’s lasting impact on remote work
The COVID-19 pandemic acted as a catalyst for the widespread adoption of remote work across the United States. As lockdowns forced millions of office workers to operate from home, many employees and employers alike discovered the benefits of this arrangement.
“It feels like remote work is toothpaste that you can’t just push back into the tube,” said Cameron Macht, a regional analyst with the Minnesota Department of Employment and Economic Development (DEED).
“Workers have experienced it and now they like it. It seems like it will be hard to go backward.”
Top U.S. states for remote workers
Here are the 10 U.S. states with the biggest shares of remote workers:
- District of Columbia – 64%
- Maryland – 40%
- Colorado – 39%
- Massachusetts – 38%
- Washington – 37%
- Oregon – 35%
- Minnesota; Virginia – 34%
- Utah; Arizona; California – 33%
- Vermont; New Hampshire; Connecticut – 23%
- New York; Illinois – 31%
The rise of hybrid work models
While some states or cities, such as Idaho, Nebraska, and Philadelphia, have mandated return to the office, the Minneapolis Fed report notes that this has been met with resistance from employees who have grown accustomed to the flexibility of remote work.
As a result, many companies have embraced a hybrid approach, allowing employees to split their time between the office and remote locations.
“That sweet spot continues to be a moving target, but it appears that hybrid schedules have emerged as a popular path forward,” the report concludes.
In fact, for the first time since the pandemic, Americans now prefer hybrid over fully remote work arrangements.
According to a Morning Consult survey of 6,625 U.S. adults, including 3,389 employed individuals, 29% said they preferred a hybrid model in 2024, up from 25% the previous year. Meanwhile, the percentage favoring full remote work dropped from 27% to 23%.
Finding the right balance
Myles Shaver, a professor of strategic management and entrepreneurship at the University of Minnesota, noted that many senior managers still believe “in-person interactions are very important for collaboration and that’s what’s best for the business.” However, the convenience and preference for remote work expressed by employees are hard to ignore.
As companies navigate this new landscape, finding the right balance between in-office and remote work will be crucial for attracting and retaining top talent.
