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01 / 05
Remote Work Is Here to Stay, Mostly for the Better

Cato Institute | Labor & Employment

Remote Work Is Here to Stay, Mostly for the Better

“As I wrote in a chapter of my recent Cato book, remote work helps employers—especially newer and smaller ones—expand their pool of potential workers, retain the workers they already have, and lower their commercial real estate costs. It can also help workers and employers find better, more productive matches and can boost employment among formerly marginalized workers—outcomes that are good for both the people involved and the broader U.S. economy.

When I wrote that book chapter in mid‐​2022, however, the future of remote work was cloudy: Data on its effects and durability were limited; pandemic‐​era restrictions were (mostly) gone, thus eliminating some of the remote work necessity; companies and workers were still figuring out such details as the proper balance between home and office; and some employers—especially at big, highly visible companies—were calling their workers back into the office full time. All of those factors made whether we were reverting to the old normal or experiencing a new one an open question.

Today, however, we have a lot more information, and it’s increasingly clear remote work is here to stay—and mostly for the better.”

From Cato Institute.

Bloomberg | Labor Productivity

Chick-Fil-A’s Lemon-Squeezing Robots Save 10,000 Hours of Work

“In a plant north of Los Angeles, machines now squeeze as many as 1.6 million pounds of the fruit with hardly any human help. The facility, larger than the average Costco store at roughly 190,000 square feet, then ships bags of juice to Chick-fil-A locations, where workers add water and sugar to whip up the chain’s trademark lemonade.

The automated plant frees up in-store staff to serve customers faster, according to the company. Squeezing lemons was a tedious task that added up to 10,000 hours of work a day across all locations and resulted in many injured fingers.”

From Bloomberg.

Wall Street Journal | Labor Productivity

The American Worker Is Becoming More Productive

“Productivity in the U.S., as measured by how much the average worker gets done in an hour, has been on the rise. That matters because the faster that productivity grows, the faster the economy can grow as well. The success of the U.S. economy, and why it has grown so much compared with other countries over the past century and more, has hinged on its productivity. 

Productivity—the total output of the economy divided by hours worked—rose 2% in the third quarter compared with a year earlier, according to the Labor Department. That marked the fifth quarter in a row with an increase of 2% or better. In the five years before the pandemic, there were only two such quarters.

The gains in part reflect massive changes in the U.S. economy since the onset of Covid-19. Companies learned new ways of doing things and adopted new technologies, while an upheaval in the labor market moved workers into more productive jobs.

Another big change in the American labor force—a massive influx of immigration—might also have played a role. Immigrants are often slotted into manual-intensive jobs, which could allow other workers to move up to more highly skilled jobs.”

From The Wall Street Journal.

Reason | Employment

Amazon Warehouses Benefit Local Economies, Study Finds

“In a newly-released research paper, Evan Cunningham, a Ph.D candidate in Economics at the University of Minnesota, studied the effects of Amazon’s continued spread across the country—growing from just a handful of warehouses, or ‘fulfillment centers,’ in 2010, to more than 1,300 today in the U.S. alone. On balance, it turns out that Amazon warehouses provide a net positive to local economies.

‘I find Amazon’s entry in a metro [area] increases the total employment rate by 1.0 percentage points and average wages by 0.7 percent,’ Cunningham writes. ‘The composition of employment shifts from retail and wholesale trade to warehousing and tradeable services, primarily driven by younger workers. Employment gains are concentrated among non-college workers.'”

From Reason.

National Bureau of Economic Research | Labor Productivity

Robots and Labor in Nursing Homes

“How do employment, tasks, and productivity change with robot adoption? Unlike manufacturing, little is known about these issues in the service sector, where robot adoption is expanding. As a first step towards filling this gap, we study Japanese nursing homes using original facility-level panel data that includes the different robots used and the tasks performed. We find that robot adoption is accompanied by an increase in employment and retention and the relationship is strongest for non-regular care workers and monitoring robots. The share of specific tasks performed by robots increases with the adoption of the respective type of robot, leading to reallocation of care worker effort to ‘human touch’ tasks that support quality care. Robots are associated with improved quality (reduction in restraint use and pressure ulcers) and productivity.”

From National Bureau of Economic Research.