WFH employees put in 20% more hours

Australians who have worked from home since the COVID-19 pandemic have cut their commutes by around three hours a week, equivalent to a time saving worth an estimated $5308 a year based on average wages, new research by the Committee for Economic Development of Australia (CEDA) found.

CEDA analysis of the latest data from the Household Income and Labour Dynamics in Australia (HILDA) survey found people who work from home commuted on average 15.7% less than if they worked in an office.

"This confirms what many Australians have experienced since the pandemic - workers are saving time and money on their commute, and in many cases are also able to work more hours or even get a job, where they couldn't do so before," CEDA economist James Brooks said.

"Commuting less brings savings on public transport fares and fuel costs, but there's also savings on time.

"We value that at $110 per week or $5308 for a 48-week working year, using the average hourly wage of Australians who work from home."

Brooks said that despite previous CEDA analysis pointing to the fact that Australians who work from home earn approximately $4400 less, they still come out ahead when comparing that figure to the estimated cost of time saved.

"In other words, what they might be losing in wages, they are gaining in reduced commute time," he said.

Additionally, the analysis found people who worked solely from home were able to work nearly 20% more hours than those who do not, and workforce participation, compared to the pre-COVID trend, has increased by 4.4%. Those who work from home half of the time work just over 9% more hours per week.

"This can be due to a range of factors such as being able to add an extra day of work, using the time gained to get more work done, cost-of-living pressures and the strong labour market," Brooks said.

Brooks said the participation rate has picked up particularly for mothers and carers who can work from home when they previously may have been locked out of the workforce.

"This analysis confirms that mothers of a child aged under four and those with impactful health conditions are now more likely to have a job," Brooks said.

"This suggests groups that had previously faced barriers to on-site work are more likely to have a job now because they can work from home."

Australia's jobs market has been surprisingly strong since the pandemic, driven by factors including worker shortages, cost-of-living pressures, changes to childcare subsidies, as well as working from home.

Brooks said more than one-third of Australians still regularly work from home, including around 60% of professionals and managers.

"Given the broad economic and social benefits of the working-from-home shift, we should look to maintain these gains, even as the labour market softens," Brooks said.