Study: Death of the office due to the pandemic greatly exaggerated

By Mark Waghorn via SWNS

The death of the office has been greatly exaggerated, according to new research from the London School of Economics.

Working from home in the aftermath of the pandemic restrictions is still rare among those hired by small businesses - the bedrock of an economy.

And although employees at many larger firms in busy metropolitan areas can work from home, this perception has twisted the reality that many people can't, according to scientists.

Researchers also said that bad internet connectivity in outlying parts of the UK is a real barrier to being able to stay at home to work.

The first study of its kind found only 12 percent of employees were able to do it at the peak of the pandemic.

This contrasts with estimates, based on survey data, which project double this share of jobs could be done from home.

Italy is the only wealthy country to have collected data on the issue from every single worker.

Study co-author Professor Riccardo Crescenzi said: "Before declaring that the office and our cities are dead, policymakers should be careful about seeing the world solely through the eyes of the metropolitan elite – whether they’re based in London, Milan or Washington.

"Not everyone is working from home or can work from home, even if they want to. The UK needs to look at the signals that we are finding in the data from other countries.

"This tells us that there are practical barriers to the adoption of working from home for the less dynamic regions and sections of the economy.

"Remote working is not yet the force for inclusion and over-coming regional disparities that it is sometimes depicted as."

The findings echo those of US research which measured remote work using information on commuting habits.

It found that while working from home is common in large cities, less developed areas have a much lower share of people working from home.

Crescenzi added: "If you are sitting in a small business in Newcastle, you may not have access to the technologies nor have managers with the right skills to make working from home successful in the way it can be for bigger, wealthier companies.

"If the government is serious about its leveling up agenda and supporting an inclusive transition to the digital economy, it needs to ensure that we have excellent broadband connectivity across all areas of the UK."

Poorer regions and Small and Medium Enterprises (SMEs) have been left behind by the digital revolution. It means for most of us the office is here to stay.

The London School of Economics team found remote working is more common among larger and more productive companies.

Seventy percent of large firms, with 250 or more employees, had at least one worker teleworking during the 2020 lockdown.

Only one percent of firms with fewer than 10 employees adopted working-from-home practices.

Companies that allow their employees to work from home also tend to be based in wealthier regions.

In Lazio and Lombardy - home to Rome and Milan respectively - more than 21 percent of employees were able to work from home during the lockdown.

This is in contrast to less than two percent of workers in the less affluent areas of Calabria, Molise, Apulia and Sicily in the south.

The gap between the estimated potential for people to work from home and the reality was staggering.

Co-author Dr. Davide Rigo added: "Smaller companies need more support to train their workers in digital skills and knowledge, as well as help in adopting cloud technology – which is so essential for effective working between team members working remotely from one another."