The Remote Work Debate: CEOs vs. Goldman's Chief Economist
CEOs have long blamed remote work for declining productivity, but economists argue that the slowdown in productivity growth is a long-term trend that predates the rise of remote work. A recent report by Goldman Sachs supports this claim, stating that productivity growth has either stalled or dropped over the past five years, and it is not due to remote work or other modern challenges. The concept of total factor productivity (TFP), which measures growth without adding to labor force or capital, suggests that productivity growth tends to gradually even off over time. While generative AI could potentially offset the growth slowdown, it is still premature to rely on it. The debate over remote work and productivity continues, with some arguing that flexible work arrangements are not to blame for reduced focus, but rather a lack of employee choice and weak workplace infrastructure.