About four in 10 firms said they’ve expanded opportunities to work remotely to lessen pressure on their labor budget over the past year, and a similar number expect to do so over the next 12 months.
The rise of remote work could make the Federal Reserve’s task of taming inflation a bit easier, while saving employers more than $200 billion, according to new research.
“This moderating influence lessens pressures and eases the challenge facing monetary policy makers in their efforts to bring inflation down without stalling the economy,” the authors wrote. They include Stanford University’s Nicholas Bloom, the University of Chicago Booth School’s Steven Davis, and Brent Meyer, an economist at the Federal Reserve Bank of Atlanta.
“The key thing is the reduction on inflation, which is a huge issue for Jerome Powell and setting interest rates,” Bloom said via email.The analysis could provide some macroeconomic support for remote-work advocates, who also cite previous research from Bloom and other academics that have found the practice can improve job satisfaction and even lower quit rates without harming productivity.
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