The outbreak of the coronavirus pandemic has sent millions of us to our homes, with governments across the world hoping that many of us can continue working from our home offices to ensure the economy maintains a semblance of normality.
New research from the University of Chicago Booth School of Business explores just how realistic that is. The study examined not only the proportion of jobs that can be done from home, but also the share of total wages those jobs represent, and the geographic spread of work-from-home’ability.
“Social distancing is difficult for everyone, but some people and sectors are disproportionately hurt,” the researchers explain. “Most jobs in finance or insurance have a chance to continue with some degree of normalcy through the crisis, as they can be performed at home away from others. For just about everyone that works in hotels or restaurants, this is not an option.”
The nature of work
The researchers used survey data to understand the nature of the jobs we do, before then classifying whether they can be done from home or not. This classification was then cross-referenced with data from the Bureau of Labor Statistics to understand the prevalence of each job, as well as the geographic spread of those jobs.
The analysis found that around 34% of jobs can be reasonably performed from home, with these jobs accounting for roughly 44% of all wages. There was significant variation between locations, however, with large metropolitan areas most likely to cater for work that can be done from home.
“Our findings are significant, that two-thirds of U.S. jobs cannot plausibly be performed at home,” the researchers say. “As the COVID-19 pandemic forces us to pause the face-to-face economy, some cities are better positioned to cope than others based on the fraction of their jobs that might be done from home.”
It’s known that living in large cities exposes people to a more rapid spread of the coronavirus, but it also appears to give people the financial security of being able to continue working from home. This is especially so in cities where industries such as finance, professional services and corporate management dominate. Areas where sectors such as retail, hospitality and agriculture dominate are not so fortunate.
