The Impact of Remote Work on Productivity

The surge in remote work due to the pandemic has significantly transformed productivity levels and economic growth potential. Research indicates that working from home has settled at approximately five times the pre-pandemic level, suggesting a lasting shift in work culture. This shift not only increases labor and capital inputs but also promises to counteract slower economic growth in the upcoming decades, particularly if artificial intelligence contributes further to output. However, the transition to remote setups has its drawbacks, such as damage to urban centers and falling valuations of commercial office spaces, yet the overall benefits for firms, employees, and society outnumber the negatives.