The Demise of the Office: WFH to Dominate by 2026
The share of workers being called back to the office has plateaued, indicating that remote work has become a permanent fixture in the U.S. labor market, according to economists. The percentage of paid work-from-home days has remained steady at around 28% in 2023, four times higher than pre-pandemic levels. Office occupancy in major U.S. metro areas has also flatlined at around 50%. The staying power of remote work can be attributed to benefits such as no commute, flexible schedules, and increased job market leverage for workers. Companies have also benefited from reduced costs and increased worker retention, while productivity has not suffered. Remote work is now the new normal, with most arrangements being hybrid, combining days at home and in the office. While a recession may cause a slight decline in remote work, long-term trends suggest that the share of employees working remotely will continue to grow, especially with advancements in technology and the enthusiasm of younger firms and CEOs for hybrid work arrangements.