Ability To Work From Home: Evidence From Two Surveys And Implications For The Labor Market In The COVID-19 Pandemic

Table 3 presents CPS estimates of employment and unemployment, by major industry.19 As indicated by the final entries in the table’s second and third data columns, across the entire economy, employment fell by 16 percent from February to April, and the unemployment rate increased by 11 percentage points.

Examining the entries in the first three data columns, one sees that, for the most part, industries in which a higher proportion of workers can telework have a smaller reduction in employment and a smaller increase in unemployment.

An even stronger relationship between employment loss and the ability to telework is evident in the remaining columns of the table. The fourth and fifth data columns show that, in every industry except agriculture, workers in occupations in which telework is feasible have a smaller percent decline in employment.

In some industries, this difference is very large. For example, in information, employment fell by 37 percent in occupations in which telework is not feasible, but only by 2 percent in occupations in which telework is feasible. In the category of other services, the corresponding numbers are 36 percent and 8 percent.

The table’s seventh and eight data columns, which break down the change in industry unemployment rates by the ability to work at home, tell the same story.

In every industry, unemployment increased by a smaller amount for workers who are in occupations in which telework is feasible.

Table 3. Industry statistics

Industry Percent share of employed able to telework (April 2020) Labor market outcomes Percent change in employment (February–April 2020) Percentage-point change in unemployment rate (February–April 2020)
Percent change in employment (February–April 2020) Percentage-point change in unemployment rate (February–April 2020) Able to telework Not able to telework Difference Able to telework Not able to telework Difference

Financial activities

81.1 -6.1 3.7 -5.8 -7.2 1.4 2.8 7.2 -4.4

Information

80.4 -11.8 9.3 -2.1 -37.3 35.2 5.8 21.1 -15.3

Professional and business services

71.6 -9.6 5.5 -6.4 -16.8 10.4 3.5 10.0 -6.5

Public administration

57.0 -3.8 3.4 -1.5 -6.7 5.1 3.2 3.8 -0.6

Education and health services

47.9 -13.9 9.4 -12.5 -15.2 2.8 8.8 9.9 -1.1

Manufacturing

41.0 -13.7 9.2 -3.9 -19.5 15.5 4.3 12.3 -8.0

Mining, quarrying, and oil and gas extraction

40.3 -14.9 4.2 5.5 -24.8 30.3 4.2 5.1 -0.8

Other services

39.9 -27.2 19.4 -8.4 -35.9 27.5 10.6 24.3 -13.6

Transportation and utilities

32.7 -10.9 8.7 4.7 -16.9 21.6 4.9 10.4 -5.5

Wholesale and retail trade

26.5 -16.4 12.6 -9.4 -18.6 9.2 7.6 14.2 -6.6

Construction

20.7 -16.6 10.2 -11.9 -17.8 5.8 5.1 11.3 -6.2

Leisure and hospitality

20.3 -42.0 32.1 -25.5 -45.1 19.6 22.9 34.1 -11.2

Agriculture, forestry, fishing, and hunting

8.1 -1.2 -1.7 -4.3 -1.0 -3.3 -5.9 -1.3 -4.5

Total

45.8 -15.6 10.8 -7.9 -21.2 13.3 6.2 14.3 -8.1

Source: Authors’ calculations based on Februrary–April 2020 Current Population Survey data and O*NET job-content data.

Conclusion

Our analysis of merged O*NET–ATUS data and merged O*NET–NLSY79 data indicates that about 45 percent of U.S. employment is in occupations in which telework is feasible. However, a much lower percentage of workers actually worked at home prior to the COVID-19 pandemic.

Specifically, only a little more than 10 percent of workers in the ATUS spent any paid workday working only at home, and a similar percentage in the NLSY79 usually spent more than 8 hours a week working at home.

Thus, according to both surveys, the implied takeup rate—that is, the percentage of workers who were in occupations in which telework is technologically feasible and who actually worked at home—was quite low prior to the pandemic.

According to the ATUS, the takeup rate was about 25 percent. In the NLSY79, with its sample of older workers, the takeup rate was about 22 percent.

Many workers have begun working at home in response to the pandemic. CPS estimates indicate that, from February to April, the drop in employment in occupations in which telework is feasible was considerably smaller than the drop in employment in occupations in which telework is not feasible.

This differential effect exists both within and across major industries, and it is likely to persist throughout the pandemic.

The extent to which working patterns will be permanently affected by the pandemic is an open question. One might speculate that the takeup rate will increase permanently as workers and employers become more comfortable with telework arrangements.

Appendix

Table A-1. Percentage of workers in telework status categories in the ATUS, by demographic, occupational, and industry characteristics

Category Telework status category
Unable to telework and did not telework Unable to telework and did telework Able to telework and did not telework Able to telework and did telework

All

54.2 2.2 32.8 10.8

Educational attainment

 

Less than a high school diploma

88.9 0.4 9.9 0.8

High school diploma, no college

74.4 1.1 21.8 2.8

Some college or associate’s degree

61.7 1.9 30.5 5.9

Bachelor’s degree and higher

29.0 3.5 46.3 21.2

Age

 

15 to 24 years

76.3 0.0 21.0 2.7

25 to 54 years

50.6 2.6 33.8 13.0

55 years and older

49.4 2.5 38.5 9.7

Comparable NLS age range (51–59)

50.7 2.7 36.3 10.3

Presence of children

 

No children

53.2 2.2 34.2 10.5

Children

55.7 2.3 30.8 11.2

Job status

 

Full time

50.4 2.4 35.0 12.2

Part time

70.0 1.4 23.8 4.9

Gender

 

Men

57.9 2.1 28.9 11.1

Women

50.1 2.3 37.1 10.4

Marital status

 

Not married

64.0 1.5 27.2 7.3

Married

47.1 2.7 36.9 13.3

Area

 

Nonmetropolitan area

67.1 1.0 28.4 3.4

Metropolitan area, unknown size

57.6 2.7 32.8 6.8

Metropolitan area, 100,000–250,000

58.1 1.5 29.0 11.3

Metropolitan area, 250,000–500,000

57.6 2.3 34.7 5.5

Metropolitan area, 500,000–1,000,000

54.9 2.8 33.2 9.2

Metropolitan area, 1,000,000–2,500,000

52.7 2.5 33.4 11.4

Metropolitan area, 2,500,000–5,000,000

47.5 3.0 34.2 15.4

Metropolitan area, 5,000,000+

49.2 2.0 34.4 14.4

Race or ethnicity

 

Non-Hispanic White

48.6 2.7 35.8 12.9

Black

58.8 1.7 29.9 9.6

Hispanic

70.0 1.1 24.8 4.2

Occupations

 

Management, business, and financial

11.6 1.8 60.9 25.7

Professional and related

32.7 2.9 46.3 18.1

Service

90.2 1.9 7.3 0.6

Sales and related

65.2 2.9 22.6 9.3

Office and administrative support

38.4 2.4 53.1 6.1

Farming, fishing, and forestry

99.1 0.9 0.0 0.0

Construction and extraction

97.4 2.6 0.0 0.0

Installation, maintenance, and repair

97.9 1.2 1.0 0.0

Production

97.9 1.7 0.4 0.0

Transportation and material moving

98.6 1.1 0.3 0.0

Industries

 

Agriculture, forestry, fishing, and hunting

89.0 2.8 6.6 1.7

Mining, quarrying, and oil and gas extraction

31.8 12.4 41.2 14.7

Construction

80.5 2.2 15.1 2.3

Manufacturing

60.7 2.9 24.9 11.5

Wholesale and retail trade

71.6 1.6 21.7 5.2

Transportation and utilities

73.3 1.4 19.7 5.6

Information

27.6 1.2 45.0 26.3

Financial activities

18.3 3.8 54.8 23.0

Professional and business services

27.4 2.7 41.4 28.5

Education and health services

49.2 1.9 41.2 7.7

Leisure and hospitality

86.2 0.7 11.4 1.7

Other services

64.1 4.9 26.6 4.4

Public administration

32.3 2.5 54.5 10.8

Note: NLS = National Longitudinal Surveys.

Source: Authors’ calculations using the 2017–18 Leave and Job Flexibilities Module of the American Time Use Survey (ATUS).

Table A-2. Percentage of workers in telework status categories in the NLSY79, by demographic, occupational, industry, and job-task characteristics

Category Telework status category
Unable to telework and did not telework Unable to telework and did telework Able to telework and did not telework Able to telework and did telework

All

52.2 3.1 35.1 9.7

Educational attainment

 

Less than a high school diploma

79.3 3.6 16.4 0.6

High school diploma, no college

66.9 2.8 26.4 3.9

Some college or associate’s degree

54.6 2.9 34.8 7.7

Bachelor’s degree and higher

26.2 3.4 50.3 20.2

Gender

 

Men

57.8 3.5 28.9 9.9

Women

45.9 2.7 42.0 9.5

Race or ethnicity

 

Non-Hispanic White

49.9 3.2 36.2 10.7

Black

64.0 2.6 28.1 5.4

Hispanic

58.1 3.0 34.0 5.0

Marital status

 

Not married

57.7 3.0 32.0 7.3

Married

49.2 3.1 36.8 10.9

Presence of children

 

No children

53.4 2.7 35.0 9.0

Children

44.2 5.7 35.9 14.3

Job status

 

Full time

50.1 3.1 36.5 10.3

Part time

65.1 2.7 26.3 5.9

Occupations

 

Management, business, and financial

10.5 3.0 66.3 20.2

Professional and related

32.9 2.7 46.0 18.3

Service

83.0 3.6 12.5 0.9

Sales and related

64.0 5.9 19.2 11.0

Office and administrative support

36.8 1.8 56.8 4.7

Farming, fishing, and forestry

100.0 0.0 0.0 0.0

Construction and extraction

96.0 4.0 0.0 0.0

Installation, maintenance, and repair

93.2 2.9 3.9 0.0

Production

92.4 3.7 3.9 0.0

Transportation and material moving

98.7 2.0 1.3 0.0

Industries

 

No industry reported

43.7 6.1 34.9 15.3

Agriculture, forestry, fishing, and hunting

59.1 24.9 12.0 4.1

Mining, quarrying, and oil and gas extraction

85.0 0.0 7.1 7.9

Construction

73.3 5.0 19.5 2.3

Manufacturing

61.7 1.7 30.6 6.0

Wholesale and retail trade

69.0 1.7 22.6 6.7

Transportation and utilities

71.9 1.7 22.8 3.7

Information

18.9 3.8 48.5 28.8

Financial activities

22.0 2.8 54.7 20.5

Professional and business services

28.3 3.2 47.8 20.6

Education and health services

47.3 3.1 40.2 9.5

Leisure and hospitality

75.3 4.2 16.4 4.1

Other services

38.4 6.1 45.0 10.5

Public administration

43.5 1.6 47.4 7.5

PDII task measures

Time on physical tasks

 

Almost all

80.9 2.6 15.0 1.6

More than half

64.8 3.9 27.2 4.1

Less than half

42.7 3.2 43.1 11.0

Almost none

22.4 3.3 55.0 19.3

Time on repetitive tasks

 

Almost all

69.9 3.0 23.6 3.5

More than half

61.1 2.4 31.7 4.8

Less than half

45.4 3.1 41.2 10.3

Almost none

37.1 3.5 42.2 17.2

Time on managing or supervising

 

Almost all

43.7 3.1 42.6 10.5

Half or more

44.3 3.5 39.6 12.6

Less than half

52.8 3.2 34.6 9.4

Almost none

56.4 2.9 31.7 8.9

Solve problems of 30+ minutes

 

1+/day

41.0 3.4 40.6 14.9

1+/week

52.3 3.2 36.3 8.2

1+/month

60.7 3.3 31.5 4.6

Never

73.9 1.9 21.2 3.1

Use high school+ math

 

1+/day

51.0 2.3 34.5 12.3

1+/week

48.1 5.1 35.2 11.7

1+/month

42.7 5.0 40.5 11.8

Never

54.5 2.6 34.3 8.6

Longest document typically read at job

 

< 1 page

70.3 2.3 23.9 3.5

2–5 pages

46.9 3.1 40.1 10.0

6–10 pages

42.3 1.8 42.0 14.0

11–25 pages

35.0 4.7 42.5 17.8

25+ pages

27.7 3.7 50.7 17.9

Never

80.2 5.0 12.5 2.3

Frequency of personal contact with people other than coworkers or supervisors

 

A lot

56.2 3.1 32.0 8.7

A moderate amount

44.7 3.4 41.1 10.7

A little

47.5 3.1 40.0 9.4

None at all

54.8 2.4 30.5 12.3

Frequency of personal contact with customers or clients

 

A lot

59.7 3.6 29.9 6.9

Some

42.6 3.1 43.0 11.3

None at all

49.8 2.3 35.5 12.4

Frequency of personal contact with suppliers or contractors

 

A lot

51.5 3.7 37.0 7.8

Some

49.4 3.6 37.2 9.8

None at all

54.8 2.5 32.6 10.1

Frequency of personal contact with students or trainees

 

A lot

42.8 2.6 42.5 12.2

Some

55.0 2.2 34.1 8.6

None at all

53.4 3.9 33.3 9.6

Frequency of personal contact with patients

 

A lot

71.9 3.8 21.7 2.6

Some

48.5 2.3 35.4 13.7

None at all

49.7 3.0 36.9 10.4

Note: NLSY79 = National Longitudinal Survey of Youth 1979, PDII = Princeton Data Improvement Initiative.

Source: Authors’ calculations using the most recent interview (2016–17) of the 1979 cohort of the NLSY79.

CITATION & ACKNOWLEDGMENTS
Matthew Dey, Harley Frazis, Mark A. Loewenstein, and Hugette Sun, “Ability to work from home: evidence from two surveys and implications for the labor market in the COVID-19 pandemic,” Monthly Labor Review, U.S. Bureau of Labor Statistics, June 2020, https://doi.org/10.21916/mlr.2020.14. We are grateful to Dave Piccone for his help with the recent CPS estimates. We thank Dori Allard, Rachel Krantz-Kent, Joe Piacentini, and Bill Wiatrowski for their helpful comments.

Source: This article was originally published by the Monthly Labor Review of the U.S. Bureau of Labor Statistics.

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