Working From Home Is Powering Productivity

Remote work has surged about five times from its pre-pandemic levels, promising significant productivity gains and economic growth. WFH contributes to higher labor supply by attracting disabled workers and increasing female participation. It also reduces the need for office spaces and commuting, reallocating resources for other uses. Although hybrid work has a neutral productivity impact for firms, the broader economic effects, including reduced pollution and better global talent matching, are substantial. This shift could potentially drive long-term growth and innovation, despite challenges to city centers.