Sector News

What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries

November 29, 2020
Borderless Future

Hybrid models of remote work are likely to persist in the wake of the pandemic, mostly for a highly educated, well-paid minority of the workforce.

For many workers, COVID-19’s impact has depended greatly on one question: Can I work from home or am I tethered to my workplace? Quarantines, lockdowns, and self-imposed isolation have pushed tens of millions around the world to work from home, accelerating a workplace experiment that had struggled to gain traction before COVID-19 hit.

Now, well into the pandemic, the limitations and the benefits of remote work are clearer. Although many people are returning to the workplace as economies reopen—the majority could not work remotely at all—executives have indicated in surveys that hybrid models of remote work for some employees are here to stay. The virus has broken through cultural and technological barriers that prevented remote work in the past, setting in motion a structural shift in where work takes place, at least for some people.

Now that vaccines are awaiting approval, the question looms: To what extent will remote work persist? In this article, we assess the possibility for various work activities to be performed remotely. Building on the McKinsey Global Institute’s body of work on automation, AI, and the future of work, we extend our models to consider where work is performed.1 Our analysis finds that the potential for remote work is highly concentrated among highly skilled, highly educated workers in a handful of industries, occupations, and geographies.

More than 20 percent of the workforce could work remotely three to five days a week as effectively as they could if working from an office. If remote work took hold at that level, that would mean three to four times as many people working from home than before the pandemic and would have a profound impact on urban economies, transportation, and consumer spending, among other things.

The virus has broken through cultural and technological barriers that prevented remote work in the past, setting in motion a structural shift in where work takes place, at least for some people.

More than half the workforce, however, has little or no opportunity for remote work. Some of their jobs require collaborating with others or using specialized machinery; other jobs, such as conducting CT scans, must be done on location; and some, such as making deliveries, are performed while out and about. Many of such jobs are low wage and more at risk from broad trends such as automation and digitization. Remote work thus risks accentuating inequalities at a social level. Read full article

By Susan Lund, Anu Madgavkar, James Manyika, and Sven Smit

Source: McKinsey.com

comments closed

Related News

May 21, 2022

The net-zero transition in the wake of the war in Ukraine: A detour, a derailment, or a different path?

Borderless Future

In this article McKinsey attempts to examine the possible effects of the war and its ramifications on the key requirements for a more orderly net-zero transition. Explores the war’s potential effect on key sectors and how shifts in energy and finance markets could play out in the aggregate, both globally and within major regional blocs.

May 15, 2022

Reengineering your business for a smart and connected World

Borderless Future

The shift from standalone hardware to smart, connected products is pervasive—and it’s here to stay. Forward-thinking hardware companies are taking leadership positions in a new era of product development. Will you be one of them?

May 7, 2022

Is real-time data too late?

Borderless Future

It’s interesting to reflect on the opportunities which were imagined back in 2010, and which regularly appear on today’s supply chain agenda. Some progress has been made over the past decade, but there are still plenty of early observers to be convinced, and early adopters who haven’t realized that real-time information alone will not necessarily deliver competitive advantage.