Background
While many studies lead to expectations of significant post-pandemic telework, has this become the reality?
Research Design
This study explores how recent and “ideal” teleworking has changed before, during, and after the pandemic:
- This study uses two waves (2021 and 2023) of the Future Mobility in Canada Survey (FMCS) to study six major urban regions.
- This study updates expectations of future teleworking using fall 2023 data to reflect on the changing policy implications of teleworking propensities.
- This study uses descriptive statistics to explore changes in teleworking.
- This study uses ordered logit models to estimate among what groups (using interaction terms) teleworking has grown/shrunk over time.
Inferential Study Findings
Based on ordered logistic regression models, the return to work between 2021 and 2023 was highly unequal among demographic groups. In particular:
- While older individuals (>35) were more likely to telework in the base scenario, the return to work between 2021 and 2023 was dominated by decreasing teleworking among the young (<36) and those aged 36-55.
- Most return to work was among sectors already most likely to engage in teleworking (office, professional, managerial, etc.) in 2021.
- Larger households were slower to return to the workplace (’21-’23).
- High-income households were fastest to return to the workplace (’21-’23).
- While those with transit passes were more likely to telework in 2021, this effect was not significant by 2023 – indicating a return to work.
- Zero-vehicle households were more likely to telework in 2021, continued at high rates, and aspired towards even higher “ideal” teleworking rates.
- While CBD-proximate workplaces were associated with more teleworking in 2021, this effect essentially disappeared by 2023.
- All else being equal, high-density workplaces were associated with more teleworking in 2021, but this effect essentially disappeared by 2023.
- Montreal and Vancouver were slowest to return to work (albeit from respectively higher/lower levels of teleworking) between 2021 and 2023.
- Workers residing 35 or more kilometers from their work were more likely to telework, but this effect attenuated between 2021 and 2023.
Overall Study Findings
- (1) Teleworking Change (2021-2023)
- Teleworking decreased from 1.8 to 1.3 days per week among full-time employees.
- “Ideal” teleworking decreased from 1.7 to 1.4 days per week among full-time employees.
- (2) Teleworking and Demographics
- Most of the return to work between 2021 and 2023 was among younger age groups (<56) and particularly those under 36.
- (3) Teleworking and Mobility Tools
- Zero-vehicle households continue to telework more than other groups.
- While transit pass holdings were strongly associated with more teleworking in 2021, this effect disappeared by 2023.
- (4) Teleworking and Spatial Structure
- While urban and downtown workplaces had more teleworking in 2021, this effect disappeared by 2023.
- Different Census Metropolitan Areas returned to work at different rates.
Conclusions
- There are three main conclusions in this study:
- (1) The future of telework
- Hybrid work has unambiguously become a norm for a significant share of employees.
- Teleworking has decreased significantly from its peak.
- There is significant latent demand and potential for evolution in teleworking based on disconnects between observed and “ideal” teleworking rates.
- (2) Teleworking and Downtowns
- Changes in teleworking between 2021 and 2023 generally represent good news for cities: while it had been concentrated in downtowns in 2021, it is more dispersed by 2023.
- This represents good news for urban real estate markets and agglomeration economies.
- (3) Is teleworking a merit good or an economic good?
- Findings in how workers have returned to the office (particularly younger generations) suggest there needs to be thought on how inter-generational knowledge is transferred.
- Income-variant returns to the office suggest significant class-based differences in teleworking which raise questions about whether it is a right for workers or whether it is a decision made based on economic rationales.