Working from home is great if you already have a job.
In recessions, lots of bad things happen to the labor market.
Unemployment rises sharply.
Wage gains level off.
And the number of open jobs plummets.
All of which leads to dimmer prospects for those both employed and unemployed.
After a sluggish recovery for the labor market during the early part of the 2010s, data showing the number of workers quitting jobs on the rise, the number of job openings at record highs, and wages rising at the fastest rate in almost a decade were all signs that dynamism had returned to the labor market.
And while we’re still in the early stages of appreciating just how disruptive the current shock is to the labor market, data from Indeed suggests the biggest trend in workforce management is a negative for the overall health of a region’s labor market. And that trend, of course, is working from home.
“This crisis has hit different places unevenly,” writes Jed Kolko, chief economist at the Indeed Hiring Lab, in a post published Thursday.
“In some metros, job postings plummeted as much as 60%. Even seven weeks into a modest rebound, job postings in many large metros remain 40% below last year’s trend…Most surprisingly, metros like Seattle, San Francisco, and New York, where more people can do their jobs from home, have seen some of the biggest drops in job postings.” (Emphasis added.)