Research Summary. Most employees would prefer to work from home if their employer offered the opportunity. In fact, many are willing to forego benefits like higher pay, vacation time, and employer-matching retirement contributions just to work remotely.
Still, despite the related productivity benefits, there are distinct divides among income, education, race, and gender when it comes to the ability to work from home.
After extensive research, our data analysis team concluded:
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Nearly 50% of the U.S. labor force currently works remotely from home, which is negatively impacting city centers and positively impacting suburban and rural areas.
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9 out of 10 employees plan to continue working from home in the future.
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The coronavirus pandemic has vastly increased the number of employees who work from home, and 54% would like to continue working from home after the Coronavirus outbreak ends.
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74% of companies intend to permanently shift some of their employees to working from home.
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77% of employees feel more productive when working from home.
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While only 65% of Americans have a fast enough internet connection to support workable video calls, most remote employees successfully utilize video conferencing and other technology to work effectively.
For further analysis, we broke down the data in the following ways:
Productivity | Remote Work Location | Related to Coronavirus | Income and Education | Related to Technology | Industry, Position, and Earnings | Gender and Race
General Work From Home Statistics
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42% of the U.S. labor force works from home full-time.
Between workforce changes in response to the coronavirus pandemic and advances in communications technology, nearly half of employed adults in the U.S. now work remotely. In fact, almost twice as many employees now work from home compared to working at a physical office or other location (26%).
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Remote work is reducing the economic importance of city centers.
Beginning in the 1980s, revitalized downtowns were the places to work for younger, educated employees. However, the trend reversed in 2020 as remote work became more available — and even the norm. In some instances, workers relocated to suburban and rural locations.
These changes can have far-reaching economic impacts on urban centers, including transportation, gasoline sales, vehicle purchases, restaurant and retail store patronage, and the need for downtown real estate (including office space). Regarding the latter, U.S. office vacancy rates are expected to climb to 20.2 percent by the end of 2022.
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Most remote employees have the tools and skillsets they need to find success while working from home.
Specifically, 87% have found it easy to get the equipment and technology they need to do their job, 80% have found it easy to meet deadlines and complete projects on time, 64% feel motivated to do their work, and 68% have found it easy to get their work done without interruptions.
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By not commuting, employees who work from home save 8.5 hours per week, which adds up to 408 hours over the course of a year.
And with some of this extra time, those who work from home report exercising 30 minutes more during the workweek.
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43% of remote workers agree that the most significant benefit to working from home is schedule flexibility.
On the other hand, the biggest struggles cited by remote workers include:
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Loneliness
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Collaborating or communicating
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Distractions at home
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90% of remote workers plan on working remotely for the rest of their careers.
And the excitement doesn’t stop with each employee, as 94% of remote workers say they encourage others to work remotely.
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Working from home can be beneficial to both employees and employers.
For example, 55% of remote workers take fewer than 15 days of vacation per year, making them more available throughout the year.
What’s more, many employees are willing to forego or reduce common benefits in exchange for working remotely.
Specifically, 28% of employees said they would take a 10% or 20% cut in pay to have more flexibility regarding work remotely. 21% are willing to forfeit vacation time, while 17% said they would give up employer-matching retirement contributions.
And when it comes to attracting top talent, working from home is the biggest perceived benefit by prospective employees.
There are also tangible cost savings. Employees who work from home at least half-time save between $600 and $6,000 per year, while a typical employer can save an average of $11,000 per employee per year.
Environmentally, working from home (and the related reduced commuter traffic) can help reduce a company’s carbon footprint.
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Among those who run their own companies, 88% always intended to support remote work.
And of companies that employ remote workers, most are at the smaller end of the spectrum. For example, 22% of these businesses have fewer than ten employees, 17% have 11–25 employees, and 15% have over 1,000 employees.
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Most remote workers earn less than $25,000 per year.
According to 2018 numbers:
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28% of remote workers make less than $25,000 USD per year
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18% make $25,001 – $50,000
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18% make $50,001 – $75,000
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Work From Home Productivity Statistics
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Remote work productivity increased by 47% between March and April 2019 compared to March 2020.
But this increased productivity doesn’t span all days and times. Remote workers are the most productive on Tuesday, Wednesday, and Thursday between 10:30 am and 3:00 pm.
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Work from home employees spend 15% less time avoiding work, although they also take more breaks.
While they typically take more breaks, 37% of remote employees say doing so is the best way to stay productive.
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Those who work from home are less distracted.
75% of people say they are more productive working remotely due to fewer distractions.
Remote Work Location Statistics
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Most remote workers do their jobs from the comfort of their homes, although many also work in secondary locations.
78% of remote workers use their home as their primary place of work.
The office came in second as a primary place of work (9%), followed by coworking spaces (7%) and cafes (5%).
Regarding secondary work locations, 33% prefer cafes, 25% prefer their home, 12% prefer coworking spaces, and 11% prefer to work from an office.
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Expenditures can vary depending on the remote working location.
Of those who rented a coworking space, 71% said they spent less than $100 per month. And of those who worked at cafes, 19% spent $6-$10 per week, 13% spent $11-$15 per week, and 12% spent more than $20 per week.
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Many remote employees work while traveling.
While 43% of remote employees say they spend 10% or less of their time traveling while working remotely, 81% have traveled outside of their home city and spent time working during those travels.
Work From Home Statistics Related to Coronavirus
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More people than ever are working from home due to coronavirus.
Working from home is economically essential and is critical to help fight against the COVID-19 pandemic.
In this regard, 64% of those who work from home say their workplace is currently closed or unavailable. 36% say their workplace is open, although they choose not to go.
Consequently, 62% of employed adults say that they rarely or never worked from home before the start of the coronavirus outbreak, although 55% say they are currently working from home all of the time.
With these numbers in mind, before the Coronavirus outbreak, 20% of adults worked from home all or most of the time. However, this number has now increased to 71%, and 54% of these employees would like to work from home after the Coronavirus outbreak ends.
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For those working remotely part-time, many are worried about being exposed to coronavirus while at their physical place of work.
About 80% of those who are not currently teleworking all of the time report they have at least some in-person interaction with others at their workplace, with more than 50% reporting they have a lot of in-person interaction.
And more than half (57%) of these workers say they’re concerned about being exposed to the coronavirus from others at work or unknowingly exposing others. For the most part, though, these workers are largely satisfied with the steps that have been taken at their workplace to protect them from exposure to the virus.
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Many teleworkers now find it easier to balance work/family life, although many feel less connected to their co-workers.
38% of new teleworkers say it’s easier now to balance work with family responsibilities than before the coronavirus outbreak. However, this number drops to 10% among those who worked from home before the outbreak.
Of those who didn’t work from home before the pandemic, 65% say they now feel less connected to their co-workers. This number drops to 27% for more seasoned teleworkers.
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Maintaining motivation can be a problem among remote workers, although the numbers vary widely based on age.
42% of workers ages 18 to 49 say staying motivated to do their work has been difficult for them since the coronavirus outbreak started, compared to 20% of those aged 50 and older.
Work From Home Statistics by Income and Education
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Having the ability to work from home highly depends on salary.
76% of low-income workers say their job responsibilities cannot be done from home. This number drops to 63% of middle-income workers and 44% of upper-income workers.
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Workers with higher education levels can do their work from home, compared to those with less education.
62% of workers with a bachelor’s degree or higher education say they can do their work from home, which drops to 23% of those without a four-year college degree.
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The more education an employee has, the more likely it is that they worked from home in 2020.
And these numbers largely play out among those who actually worked from home in 2020. 65% of employees with a bachelor’s degree or higher worked from home last year, which represents an increase from 37% in 2019.
Comparatively, 19% of those with no higher than a high school diploma worked from home last year. However, this was still an increase from 13% in 2019.
Work From Home Statistics Related to Technology
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Most telework employees rely heavily on video conferencing software to maintain contact with co-workers.
81% of adults who work from home use video conferencing software at least some of the time to communicate with co-workers, while 59% use this software often. 57% also use instant messaging platforms some of the time, with 43% using them often.
Despite these higher numbers, it’s essential to point out that only 65% of Americans have a fast enough internet connection to support workable video calls. 35% have a poor internet connection (or none), which prevents effective remote working.
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Most remote employees look at technology platforms as a good substitute for in-person contact.
65% of teleworkers view video conferencing and instant messaging platforms as a good substitute for in-person contact, whereas 35% do not feel this way.
Work From Home Statistics by Industry, Position, and Earnings
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Employees’ reported ability to do most of their job duties from home varies widely by industry.
These numbers include:
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84% of those in the information, technology, banking, finance, accounting, real estate, and insurance sectors.
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59% of those in education, professional, scientific, and technical services.
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46% of those in government, public administration, and military sectors.
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25% of those in healthcare and social assistance sectors.
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23% of those in hospitality, service, arts, entertainment, and recreation.
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22% of those in manufacturing, mining, construction, agriculture, forestry, fishing, and hunting.
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16% of those in retail, trade, or transportation.
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Different industries experienced varying increases in the share of work-from-home opportunities between 2019 and 2020.
Those employed in financial activities increased by 40% between 2019 and 2020, professional and business services by 25%, education and health services rose 23%, manufacturing was up 11%, wholesale and retail trade increased by 10%, transportation and utilities increased 9%, and leisure and hospitality increased 8%.
With these numbers in mind, many industries have returned to near pre-pandemic levels as of 2021, including education and training, community and social services, arts and entertainment, and sales.
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Even among industries where work-from-home opportunities may be available, some positions and activities are more conducive to remote work than others.
Certain positions and duties require more in-person collaboration, problem-solving, and creativity than others, such as coaching, counseling, customer relations, negotiation, teaching, and training.
On the other hand, when it comes to specific activities, most remote workers report they can learn and update their knowledge, interact with computers, communicate with other employees, and process and analyze information effectively while working from home.
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Most remote workers are older, work for larger companies, hold higher-education degrees, and earn more than the median individual income.
Those who work from home have often attained higher levels of education and promotion experience than those who don’t. 78% have at least a college degree, and 32% are manager level or higher.
Furthermore, most of those who work from home are 45 years old or older, earn an annual salary of $58,000, and work for an organization with more than 100 employees. Specifically, 75% of remote workers earn more than $65,000 annually.
Work From Home Statistics by Gender and Race
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Both men and women experienced increased work from home availability between 2019 and 2020.
Women (41%) are more likely than men (36%) to say they can do their job from home.
Among those who actually worked from home, the percent of men increased from 20% in 2019 to 36% in 2020. The number of women who worked at home increased from 26% to 49% between 2019 and 2020, respectively.
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There is a distinct racial divide when it comes to working from home.
57% of Asian American workers say they can perform most of their job responsibilities from home, which decreases to 39% of White workers, 37% of Black workers, and 29% of Hispanic workers.
Work From Home FAQ
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Yes, working from home works. There are many benefits that come with working at home, from increased productivity to better work-life balance. Here are some of the main benefits outlined:
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Increase in productivity. Between April 2019 and March 2020, work from home productivity shot up 47%. Ever since more employees have started to work from home, there’s been a considerable increase in productivity.
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Flexibility. 43% of remote workers agree that the most significant benefit to working from home is schedule flexibility. Their schedule is less stressful and hectic, and they can have a better work-life balance.
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Less time off needed. Because remote workers have a better work-life balance, they often don’t feel the need to take as many days off. 55% of remote workers take fewer than 15 days of vacation per year, making them more available throughout the year.
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No commute. Work from home employees doesn’t have to spend time commuting every day. Talk about a stress reducer.
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Cost savings. Both employees and employees save money by working from home. Employees who work from home at least half-time save between $600 and $6,000 per year, while a typical employer can save an average of $11,000 per employee per year.
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Are remote workers more productive?
Yes, remote workers are more productive. On average, workers are 13% more productive when working from home, and overall worker productivity in the U.S. has increased by 5% since the start of the pandemic. In fact, when employees are able to work from home, their performance increases by 22%.
And the employees feel the difference, as 94% of them report feeling like their work productivity was the same or higher than when they didn’t work from home.
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What percentage of employees are working remotely?
Nearly 50% of the U.S. labor force is currently working remotely. And of that percentage, nine out of ten plan to continue working from home for the foreseeable future.
This has a profound effect on the country, as more and more people are taking an interest in moving out of urban areas and relocating to more rural ones. Employees who work from home aren’t bound to any specific location, so they instead get to choose where they want to live, not where they have to live.
Conclusion
The coronavirus outbreak was — and continues to be — a significant factor in the substantial increase in remote work opportunities between 2019 and 2020, which is causing a massive shift in the economy as a whole, as well as among individual employees.
And while there have been some adjustments between 2020 and 2021, the trend appears to be here to stay for the foreseeable future.
However, we can see that the number of remote workers varies widely depending on the industry, specific position, education, salary, race, and gender. Access to a robust internet connection and communications technology also plays a significant role.
References
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Pew Research Center. How the Coronavirus Outbreak Has – and Hasn’t – Changed the Way Americans Work. Accessed on 8/3/21.
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U.S. Bureau of Labor and Statistics. American Time Use Survey — May to December 2019 and 2020 Results. Accessed on 8/3/21.
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Apollo Technical. Surprising Working From Home Productivity Statistics (2021). Accessed on 8/3/21.
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Buffer.com. State of Remote Work 2018 Report: What It’s Like to be a Remote Worker in 2018. Accessed on 8/4/21.
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FlexJobs. FlexJobs 2018 Annual Survey. Accessed on 8/4/21.
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Stanford News. Stanford research provides a snapshot of a new working-from-home economy. Accessed on 8/5/21.
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McKinsey Company. What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. Accessed on 8/5/21.
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Business Insider. This may be the end of the work-from-home economy. Accessed on 8/5/21.
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Global Workplace Analytics. Latest Work-At-Home/Telecommuting/Mobile Work/Remote Work Statistics. Accessed on 8/5/21.
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Forbes. 5 Statistics Employers Need To Know About The Remote Workforce. Accessed on 8/5/21.
Author
Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.
