Will cities survive permanent work from home?


if you work in an office chances are you’ve been working from home and possibly will continue to for an unknown number of months the idea has always been that one day you would return to the office but what if you didn’t telecommuting goes back 40 years this equipment here will allow him to carry on normal business activities without ever going to an office away from home jack nillis was a rocket scientist and he was just coming off a rocket project and somebody challenged him hey if you can put a man on the moon why don’t you fix the problem of traffic and he said okay i will and at the time it was oh this is going to change the world we’re all going to work remotely that didn’t really happen only about 4 of the u.s workforce works at home half time or more and that’s about to change the list of companies committed to some version of permanent work from home is growing and many employees want that flexibility in the u.s 88 percent say they want to continue working from home at least part of the time and the sweet spot is two to three days a week it’s a sweet spot for employers too because at that point they can start to reconstruct their office space to be used for collaboration and communication recognizing that home can be the place for concentration a recent survey found that 68 of large companies ceos plan to downsize their office space and that will likely be a massive blow to major cities cities do not exist without commerce they are effectively like marketplaces on steroids and they’re a really critical component of the modern economy and the ripple effects of workers staying home impact more than just commercial real estate same difference for all of those urban retailers that service workers during a daily basis so that’s everything from your deli to your local drugstore to even right entertainment complexes that serve workers both during the day and certainly after it major impacts on transportation emptier highways and roadways which in theory is great news for the people who continue to travel but is a major impact for the state and local governments that rely on gas tax receipts that actually help make sure to maintain the quality of those roads and even more profound impacts on our public transportation systems of which metropolitan new york city has seen just really really tragic numbers at scale but transit agencies all over the country even in small metropolitan areas have been hit really hard by this feature small business owners like eddie travers who has a restaurant in new york city could struggle to keep the doors open you know the tourists are gone the business people are gone and a lot of the locals are gone you know a lot of business people are leaving new york and working from home and having the ability to work at home i guess it frustrates me because people don’t understand what’s got what’s going on here the question is not whether cities will cease to exist or even lose their lore but it’s what working from home could do to urban disparity unemployment rates which are already lower among the college educated that gap is actually widening so in other words lower educated workers from a formal sense are experiencing unemployment at a higher rate than they typically would including from past recessions so we can immediately connect that to the travels if you will of many of these high skill high educated workers that are still employed but they’re staying at home [Music] but what might be a rough transition for the largest metropolitan areas the rest of the country could stand to benefit people are already moving out of cities in part because of covet but in part because they think that in the future they’re going to work from home and they want to live in a place that’s cheaper we’re probably going into a recession so companies are going to be looking at the opportunity for reducing costs we have been talking at the brookings metro program for years now but the idea of superstar cities hoarding if you will so much of the economic gains for the nation and what where that leaves the other markets that in many ways have been on the outside looking in now would be attractive for them to to bring in new workers um to bring in those higher incomes and to circulate in their economies um but it’s not a given on what scale workers will do this what we know for sure is that there is plentiful supply of other metropolitan areas that can offer a different kind of basically quality of life and certainly cost of living i think it’s reached now a groundswell the genie’s out of the bottle i think that as these big companies say this is what we’re going to do we’re going to have people working from home if you’re not on board you’re not going to be able to hire the people you need you’re not going to get the best and the brightest from around the world and that’s going to affect your bottom line

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