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Remote Work Fails to Bridge Regional Divide, Study Finds
Remote Work Fails to Bridge Regional Divide, Study Finds

Epoch Times

time15-05-2025

  • Business
  • Epoch Times

Remote Work Fails to Bridge Regional Divide, Study Finds

Working from home has not led to a more equal spread of jobs or skills across the UK, new research suggests. Despite promises by the previous Conservative government to 'level up' the UK and the new Labour leadership's Plan for Change, the distribution of high-skilled workers remains heavily skewed towards London, the southeast, and other urban centres. A Professor Jackie Wahba, one of the study's authors, said: 'It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas. But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities.' Same Cities, New Commutes Before the COVID-19 pandemic, most people who worked from home were based in London and the southeast. That hasn't changed much, even though remote and hybrid work have become more common. Scotland has seen a notable rise, but overall, London still leads in jobs that can be done from home. The report found that three types of places have become working-from-home 'hotspots' since the pandemic: areas with office-style jobs, places with good transport and cheaper housing, and scenic rural spots. Related Stories 5/6/2025 5/12/2025 But instead of boosting smaller towns or remote regions, the shift has led to a 'donut effect' in which people are leaving city centres for suburbs and commuter towns, hollowing out inner cities but still staying near job hubs. While people are commuting less often, they're often travelling further when they do, meaning they still need to live near large cities. Long-distance commuting has replaced full relocation. 'Geography still matters,' the report said, warning that digital connectivity alone cannot substitute for the economic and social gravity of major cities. Government Aims to Spread Jobs The day before the study was published, the government announced plans to move thousands of civil service jobs out of London. Labour's Rewire the State programme will shift 12,000 roles to cities like Manchester, Aberdeen, Birmingham, and Glasgow by 2030. Half of all senior civil servants will be based outside the capital, and new hubs focused on digital, AI, and energy will open. 'By relocating thousands of Civil Service roles we will not only save taxpayers money, we will make this Government one that better reflects the country it serves,' said Cabinet Office minister Pat McFadden in a statement. The previous Conservative government's Levelling Up agenda also aimed to spread opportunity more equally across the UK. But a report by the By the end of 2023, just £3.7 billion had been handed out to councils by the government. This raised concerns that the money was not reaching communities fast enough or making a real difference. Meanwhile, Reform UK—following local election gains— The party is pushing for mandatory office attendance for civil servants, an end to remote work subsidies, and incentives for companies to revive in-person workforces. Deputy leader Richard Tice 'To make Britain work, we must make work pay. If it pays more to stay at home, don't be surprised what happens,' he Remote Work Not a Quick Fix Although many people now work from home at least some of the time, fully remote jobs are still rare, researchers found. Hybrid work is more common, especially for skilled professionals. The study found little proof that this is helping to rebalance the economy. In fact, it may be making things worse. The study also found that people working from home move house less than those who don't. And when they do move, it's usually to save money on housing, not for work. Researchers said that decisions about remote work should be based on strong evidence. Although interest in remote and hybrid work is growing, current data are limited and many important trends are still unclear. The study recommended better data collection to track where people are moving, how easy it is to find jobs, and how hybrid work is affecting communities, especially in less wealthy parts of the UK. Ultimately, while flexible working is here to stay, the study warned that it is no silver bullet for fixing the UK's deep-rooted regional divides. PA Media contributed to this report.

The impact of remote working across UK as firms adopt hybrid policies
The impact of remote working across UK as firms adopt hybrid policies

Yahoo

time14-05-2025

  • Business
  • Yahoo

The impact of remote working across UK as firms adopt hybrid policies

New research suggests working from home may not be the solution for revitalising struggling regions of the UK, and could even worsen existing inequalities. The study, conducted by researchers from several UK universities including Southampton, St Andrews, Birmingham, De Montfort and University of Arts London, examined post-pandemic working habits and found that the hoped-for boost to areas outside the south-east of England hasn't materialised. While the rise of working from home initially held promise for levelling the playing field, the reality is more complex. The research reveals that most employees now adopt hybrid models, splitting their time between home and the office. This limits the potential for significant regional shifts, as high-skilled workers remain tethered to their workplaces. Across the UK, more than half of all workers (52 per cent) never work from home. However, this figure drops significantly for high-skilled workers, with only 29 per cent never working remotely. The majority of high-skilled workers who do work from home follow hybrid patterns, further reinforcing the link to their physical workplace. This suggests that working from home, in its current form, is not driving a relocation of high-skilled jobs to areas in need of an economic boost. Instead, it may be exacerbating existing regional divides. Professor Jackie Wahba, of the University of Southampton and the ESRC Centre for Population Change, said: 'Working from home is now a normal part of working life, with the potential to change where and how people work. 'It could offer major benefits, giving both employers and workers more choice and flexibility. But to achieve this, we must tackle key obstacles to residential mobility. 'It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas. 'But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities.' She added: 'There is also little evidence on the net economic impact for local areas of these changes in working patterns. We need better data on who is working from home, how often, and in what roles. 'This will help policymakers give targeted support to more regions. Investing in transport links, fast broadband, schools, healthcare, green spaces, cultural venues, and affordable housing are as important as providing flexible work options in drawing and retaining skilled workers. 'Working from home isn't yet bridging the gap between regions. Policymakers, businesses, and local leaders need to act to ensure that job flexibility does not exacerbate inequality but is harnessed to support real, long-term regional growth.' The research project, co-funded by the Economic and Social Research Council (ESRC) and the Ministry of Housing, Communities and Local Government, analysed data from the UK Household Longitudinal Study and Labour Force Survey. It also involved interviews with businesses, regional governments and universities in Glasgow, Sheffield and Birmingham. They found that in these 'second-tier regional cities', the advantages of working from home were seen as wider recruitment opportunities, more efficient use of office space, and the ability to attract workers to their regions because of lower living costs. However, they also raised concerns about quieter city centres, weaker workplace culture, and the limited ability to work from home in many sectors.

The impact of remote working across UK as firms adopt hybrid policies
The impact of remote working across UK as firms adopt hybrid policies

The Independent

time14-05-2025

  • Business
  • The Independent

The impact of remote working across UK as firms adopt hybrid policies

New research suggests working from home may not be the solution for revitalising struggling regions of the UK, and could even worsen existing inequalities. The study, conducted by researchers from several UK universities including Southampton, St Andrews, Birmingham, De Montfort and University of Arts London, examined post-pandemic working habits and found that the hoped-for boost to areas outside the south-east of England hasn't materialised. While the rise of working from home initially held promise for levelling the playing field, the reality is more complex. The research reveals that most employees now adopt hybrid models, splitting their time between home and the office. This limits the potential for significant regional shifts, as high-skilled workers remain tethered to their workplaces. Across the UK, more than half of all workers (52 per cent) never work from home. However, this figure drops significantly for high-skilled workers, with only 29 per cent never working remotely. The majority of high-skilled workers who do work from home follow hybrid patterns, further reinforcing the link to their physical workplace. This suggests that working from home, in its current form, is not driving a relocation of high-skilled jobs to areas in need of an economic boost. Instead, it may be exacerbating existing regional divides. Professor Jackie Wahba, of the University of Southampton and the ESRC Centre for Population Change, said: 'Working from home is now a normal part of working life, with the potential to change where and how people work. 'It could offer major benefits, giving both employers and workers more choice and flexibility. But to achieve this, we must tackle key obstacles to residential mobility. 'It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas. 'But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities.' She added: 'There is also little evidence on the net economic impact for local areas of these changes in working patterns. We need better data on who is working from home, how often, and in what roles. 'This will help policymakers give targeted support to more regions. Investing in transport links, fast broadband, schools, healthcare, green spaces, cultural venues, and affordable housing are as important as providing flexible work options in drawing and retaining skilled workers. 'Working from home isn't yet bridging the gap between regions. Policymakers, businesses, and local leaders need to act to ensure that job flexibility does not exacerbate inequality but is harnessed to support real, long-term regional growth.' The research project, co-funded by the Economic and Social Research Council (ESRC) and the Ministry of Housing, Communities and Local Government, analysed data from the UK Household Longitudinal Study and Labour Force Survey. It also involved interviews with businesses, regional governments and universities in Glasgow, Sheffield and Birmingham. They found that in these 'second-tier regional cities', the advantages of working from home were seen as wider recruitment opportunities, more efficient use of office space, and the ability to attract workers to their regions because of lower living costs. However, they also raised concerns about quieter city centres, weaker workplace culture, and the limited ability to work from home in many sectors.

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