“Remote work is here to stay,” says New York Federal Reserve

New York-area employees working from home are reluctant to give up the comforts of full-time remote work.

About 30% of employees in service sector companies work remotely an average of 3.3 days a week, suggesting that 20% of all work in the region’s service sector is now done remotely, or close to three times the percentage before the pandemic.

That’s according to the New York Federal Reserve’s August CEO Survey, which is sent to a group of 150 corporate executives, usually the chairman or chief executive. The survey typically receives around 100 responses.

“In contrast, only around 9% of employees at an average manufacturing company worked remotely for an average of 2.8 days per week, suggesting that around 7% of all work in manufacturing in the region is still done remotely, more than double the share. before the pandemic,” authors Jaison R. Abel, Jason Bram and Richard Deitz wrote in the report.

“The increase in remote work has not resulted in widespread reductions in the amount of workspace used by businesses in the region,” Abel, Bram and Deitz wrote. “Remote work is here to stay,” they added.

“Looking forward, this level of remote working is expected to decline only moderately, and only among service businesses,” the New York Fed report also found. “Next year, service companies expect around 18% of work to be done remotely. Manufacturers already appear to have adjusted to a new normal of around 7% of manufacturing hours worked remotely. distance.

(The Fed’s findings are consistent with a survey of 25,000 Americans by management consulting firm McKinsey and polling firm Ipsos, which found that 58% said they had the opportunity to work at least one day a week. , and 35% have the option of working from home five days a week.)

Also see: How to handle the dreaded ‘back to work’ Zoom call with your boss

Workers tend to prefer not to come to the office on Fridays and Mondays, according to the New York Federal Reserve survey. Tuesdays, Wednesdays and Thursdays were the most popular for in-person work. A recent investigation by the New York City Comptroller found similar trends. In the second quarter of 2022, occupancy peaked at 47% on Tuesday and dropped to 35% on Monday and 21% on Friday.

That said, working from home is a luxury enjoyed by relatively few people. The Labor Department says only 7.1% of employees teleworked because of the pandemic in July, unchanged from June. According to Future Forum, a consortium launched by Slack that aims to prioritize the digital workplace, more than a third of “knowledge” workers – those who process information – have returned to the office five days a week.

McKinsey’s survey also found that higher paid and better educated workers had more opportunities to work from home. McKinsey concluded: “Half of respondents working in education and library professions and 45% of healthcare professionals and workers in technical professions say they do remote work, possibly reflecting the rise online education and telemedicine.”

But he also warned that a shift to a remote/office hybrid work will have “significant implications for the commercial core of major urban centers and for commercial real estate in general”. He added: “As technology emerges and removes residual barriers to more distributed and asynchronous work, it may become possible to move more types of jobs offshore, with potentially significant consequences.”

The pandemic has allowed people to take stock of the impact travel and work have had on their lives. Employee burnout and toxic work environments were catalysts for the big quit, said Kokoro Robinson, vice president of talent acquisition at Velocity Global, a workplace management firm. “We’ve had this idea for as long as we can remember work-life balance. This has changed. It’s now a matter of work-life balance. There is a big difference there. »

Learn how to shake up your financial routine at Best New Ideas in Money Festival September 21 and 22 in New York. Join Carrie Schwab, President of the Charles Schwab Foundation.

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