Welcome back to the office: Tele-work continues to decrease at rapid rates

During the pandemic, the majority of the American workforce grew to love the new flexibility of working remotely and the freedom that it offers. Trends have continued to show workers being asked to move back into the office. A new study from the Department of Labor shows that the percentage of workers teleworking officially declined significantly in 2022 over 2021.  In July–September 2021, 40% of private-sector establishments had employees teleworking some or all of the time. A year later, in August–September 2022, that number had decreased to 27.5%.  

Per the US Office of Personnel Management, the term 'telework' or 'teleworking' refers to a work flexibility arrangement under which an employee performs the duties and responsibilities of such employee's position, and other authorized activities, from an approved worksite other than the location from which the employee would otherwise work.

Only 11% of employers are fully remote per the Department of Labor study and only 16% of employers offering some type of hybrid working set up. Having the freedom to work remotely is one the highest valued attributes of a job today but unfortunately those are coming harder and harder to find. This flexibility is one of the most important aspects to younger workers without families as families are usually tied to in-person school processes and routines that limit the ability to travel or set other flexible work hours.

At #1 on the list, 42% of employers in the information sector have employees working remotely, while #2 is professional business services (think consulting, technology or lawyers) at only 25%. It continue to move lower from there with financial activities at only 11% down to healthcare at 4%.

Feedback is varying on productivity – from CEOs like Elon Musk saying that working from home leads to less productive workers, which can be counter to research reports. Even with the research, managers don't necessarily believe that they are — what Microsoft researchers call "productivity paranoia." That may be one driver behind the return to office, as firms find themselves under greater pressure to prove returns in a tough economic climate.

As the impact from COVID-19 pandemic continues to evolve, the extent and nature of teleworking is changing. Some employers may revert to pre-pandemic work arrangements, while others may adopt hybrid models that combine remote and on-site work. The extent to which teleworking will persist and its implications for the labor market and society at large remain uncertain and subject to ongoing research and analysis.

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