The COVID-19 pandemic triggered the fastest and most extensive transformation in work arrangements ever seen. Prior to 2020, only about 5% of workdays were spent at home. This figure surged to 60% during the pandemic. Currently, U.S. workers spend approximately 27% of their workdays at home, fundamentally altering commutes, office spaces, business districts, workplace interactions, and time management. The full impact is still unfolding, and ongoing discussions between workers and employers continue about the effectiveness of remote work on productivity.

Hybrid work, where employees split their time between working on-site and at home, has become the most common arrangement. Over 25% of U.S. workers report using a hybrid model, while just 12% work entirely remotely. In California, remote work is more prevalent compared to the rest of the country. In a survey conducted randomly during 2022, 17% of California workers (approximately 3.2 million) indicated they had "typically" worked from home the previous week, compared to 15% of workers nationwide.

According to the PPIC Statewide Survey, 60% of employed Californians would like to work from home at least part of the time. Although evidence on the impact of remote work on productivity is mixed and some workers may benefit from being close to colleagues for career advancement, the flexibility of remote work is highly valued. This flexibility could potentially boost labor force participation. Preliminary evidence suggests that telework opportunities have enhanced employment among women in recent years. Additionally, remote work offers significant advantages for workers with disabilities, though this shift has not been widespread within this group.

Occupations with higher remote work flexibility have experienced significant job growth. While overall employment declined by 2% from 2018-19 to 2021-22, jobs in fields where at least half of the workforce works remotely grew by 12%. Notable growth sectors include software development, mathematical sciences, management analysis, and computer hardware engineering. Writers and editors, though not experiencing rapid growth in California, are among the top remote occupations.

Conversely, employment has decreased in fields with minimal remote work opportunities. Jobs in sectors like building support (security guards, janitors), food service (chefs, food preparation), and agriculture saw nearly a 7% decline. This drop is partly due to reduced office space usage, which lowers demand for building maintenance and food service in business districts.

The pandemic has also shifted consumer purchasing patterns significantly towards online transactions, impacting employment trends. Although not remote work, jobs in freight and material moving, as well as shipping and receiving, have seen substantial growth. In contrast, retail positions, including sales clerks and management roles, which predominantly involve face-to-face interactions, have experienced significant declines.

Despite the rise in remote and hybrid work arrangements, which are now five times more common than before the pandemic, most employed Californians still work outside the home. As we adapt to this new work landscape, it's crucial to consider the long-term effects and develop policies that support both workers and businesses.