America's productivity boom may have an unlikely hero: working from home
Briefly

America's productivity boom may have an unlikely hero: working from home
"“WFH often raises productivity in A/B trials,” Bloom wrote, pointing to research showing employees are often able to focus better at home while avoiding long commutes and office distractions."
"“Working from home has helped lift output across the US economy in ways many executives still underestimate.” He said remote work may be boosting productivity by helping employees focus, lowering barriers to entrepreneurship, and expanding access to the labor market."
"“While many companies have pushed return-to-office mandates on the belief that in-person work improves collaboration and performance, Bloom said that the broader economic data points in the opposite direction.” He linked the productivity rebound to remote work’s effects on focus and participation."
"Data from the Bureau of Labor Statistics shows US nonfarm business-sector labor productivity - a measure of how much output workers produce per hour - jumped 5.3% in 2020, rose 2% in 2021, fell 1.5% in 2022, then rebounded with gains of 1.8% in 2023, 3% in 2024, and 2.2% in 2025."
US labor productivity has risen sharply since 2020, with growth rates that surprised economists. Nicholas Bloom attributes part of the rebound to working from home. He points to evidence from A/B trials showing employees often focus better at home by avoiding long commutes and office distractions. He argues that return-to-office mandates may underestimate the broader economic effects of remote work. Remote work may boost productivity by improving individual focus, lowering barriers to starting new ventures, and increasing access to the labor market. These mechanisms could raise output across the economy even when executives expect in-person collaboration to drive performance.
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