Remote work lowest since 2020 but dominates tech, finance: U.S. study
NEW JERSEY, UNITED STATES — Work-from-home levels in the United States have dropped to their lowest point since the spring of 2020, but remote work still dominates several industries, according to the latest data from WFH Research.
In May, only 26.6% of paid workdays were done from home, down from around 60% during the pandemic peak and 28.6% in May 2023. This means about 1 in 10 workers commuted an extra day per week compared to last year.
“Right now, there is a lot of room for people to commute slightly more often than they did over the past couple of years. That is what is leading to the downward drift,” Jose Maria Barrero, an economist and co-founder of WFH Research, told Forbes.
He noted that technology advancements in the longer term will enable work-from-home, thereby reducing the need for or benefits of in-person work.
Tech, finance lead with highest remote worker shares
Among full-time employees, 13% were fully remote, 26% hybrid, and 62% fully on-site. The information/technology and finance/insurance sectors had the highest share of remote workers at 69% and 66% respectively, averaging 2.2 work-from-home days per week.
However, industries such as retail and hospitality continue to report minimal remote work, with 0.6 to 0.7 remote days per week, necessitating physical presence for effective operation.
In terms of demographics, older workers, particularly those in their 50s and 60s, are more likely to work on-site compared to their younger counterparts. This trend highlights differing workplace preferences and requirements across age groups.
Metro hotspots for remote jobs
Geographically, Greater Los Angeles led with 34.4% of workdays remote, followed by Greater Houston (32%), San Francisco Bay Area (32%), Washington D.C.-Baltimore (30.7%) and New York metro area (30.7%).
“Smaller metros with less remote-friendly labor markets (e.g. focused on manufacturing, agriculture, warehousing) will have significantly lower levels of work-from-home,” Barrero said.
While remote work has dipped recently, Barrero noted “it is expected to rise again as technologies improve and make remote collaboration more effective.”
E-commerce boosted by remote worker habits
The shift to remote work has significantly influenced consumer behavior, notably boosting e-commerce.
The Mastercard Economics Institute reports a surge of $375 billion in e-commerce spending above pre-pandemic expectations, driven by the convenience and changing habits of remote workers.
This increase is especially pronounced in regions with a high concentration of remote and hybrid workers, affecting sectors like online grocery shopping during typical work hours.
