RBA: Work from home a permanent shift

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Yesterday’s speech by RBA assistant governor Luci Ellis included the below chart showing that the shift to remote work is likely to be permanent; albeit lower than current rates:

The share of businesses with remote working arrangements increased notably following the onset of the pandemic. While some firms have already ceased these arrangements, most have retained them and plan to stick with the current pattern in future. So this is a lasting effect on the way we plan to work. A sizeable minority plan to reduce the amount of remote working at their firms over the longer term, but few will eliminate remote work completely…

With more people working remotely, the need for as much office space comes into question… Certainly vacancy rates for both office and retail property have jumped up since the pandemic began. Occupancy of the space that is still leased is also below pre-pandemic norms.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.