Remote work statistics: Everything you need to know

The rise of remote work is the biggest change the workforce has experienced in recent years – and it’s still evolving. Although the COVID-19 pandemic dramatically accelerated the development, recent statistics show that working from home in some form is the new normal for millions of Americans.

Managing remote teams effectively can be difficult. The lack of physical presence can raise concerns about employee engagement, productivity, and company culture.

In this guide, we explore remote work statistics to give you insight into this growing work trend. Plus, we provide strategies to ensure remote work policies benefit your company.

How we researched this topic

We analyzed the latest data from authoritative sources, such as the Bureau of Labor Statistics (BLS) and Stanford economists, to ensure real-world statistics and relevant insights.

It’s important to note that remote work isn’t limited to fully remote positions – it includes hybrid working arrangements, where employees divide their time between working from home and on-site, and flexible schedules, where employees work remotely on some days.

Key takeaways

• More people now work remotely, either partially or fully, compared to pre-COVID-19 levels, with data showing an increase from just below a quarter in 2019 to around a third in 2023.

• This rise in employees working from home since 2019 indicates a broader shift toward remote work options.

• Hybrid work is now the preferred model for employees and employers, with more than half of all Americans spending part of their time working remotely.

Key remote work statistics

Here are the most important remote work statistics and the current trends they reveal.

1. Rise in remote work nationwide

Over a third of employed Americans work from home at least part of the time. 

From 2019 to 2023, the percentage of employed Americans working from home rose from 24% to 35%. During the COVID-19 pandemic, people had little choice of where they worked, but this current data suggests that remote work has cemented itself as a permanent feature of the modern working world.

2. Fully on-site roles are one-third of their pre-COVID-19 levels

The percentage of people working fully on-site hasn’t bounced back to anywhere near pre-COVID-19 levels. In fact, it’s been hovering around 20% since 2021. This shift highlights a more permanent turn toward the need for flexibility in how and where people work.

Here are the figures for people in fully on-site roles before, during, and after the pandemic:

Pre-COVID-19 lockdowns 

• 2019: 60%

Mid-COVID-19 lockdowns  

• 2020: 12%

Post-COVID-19 lockdowns  

• 2021: 21%

• 2022: 19% - 21%

• 2023: 20% - 21%

• 2024: 20% - 21%

3. More than half of college-educated employees over 25 work from home

52% of employees aged 25 and over with a bachelor's degree or higher qualification do at least some of their work remotely.

This correlates with data showing that over half – 54% – of remote workers earn $1,876 or more per week. This places them among the top earners, as only 18% of people nationwide earn this amount.

In contrast, only 22% of employees who didn’t attend college spend time working from home. 

4. Gender differences in remote work are minimal

The number of men and women who work remotely is almost equal, at 34% and 36%, respectively. There is also little difference in the number of hours each gender spends working remotely.

5. Most remote jobs have location requirements

According to FlexJobs, 95% of remote jobs have some form of geographic restriction. Hybrid workers need to be within a commutable distance for their in-office days, but many companies also place location restrictions on full-time remote workers.

This is typically because of the variation in tax, legal, and licensing requirements from state to state and the need to meet clients or colleagues in person.

6. Remote work varies by industry

According to the latest available American Community Survey (ACS) data, the five major industry groups with the highest percentages of remote workers in 2022 were:

• Professional, scientific, and technical services: 41.4%

• Information: 38.3%

• Finance and insurance: 37.6% 

• Management of companies and enterprises: 33% 

• Real estate and rental and leasing: 22% 

Unsurprisingly, the tech industry has the highest concentration of remote workers. However, other sectors are also witnessing a rise in remote work.

These top five industries have one thing in common: they all employ educated workers. Their figures have remained mostly the same since 2019, further suggesting that remote work is here to stay.

Turning away from the leading industries for remote work, other trends also stand out:

• After an understandable leap in 2021, 17.8% of people working in educational services continued to work remotely in 2022 – nearly 10% higher than the 8.8% in 2019.

• Utilities experienced a dramatic rise in remote workers, from 2.9% in 2019 to 16.5% in 2022.

• All industries saw an increase in remote workers during 2021. In fact, all but one had more remote workers in 2022 compared to pre-COVID-19 levels. 

• The only exception is the agriculture, forestry, fishing, and hunting industry, which, after rising to 15% in 2021, returned to its pre-COVID-19 level of remote workers in 2022.

7. Hybrid work arrangements are the preferred choice

The number of fully remote employees dropped from 70% in Q2 of 2020 to 29% in Q2 of 2022 and has remained steady since then. The growth of hybrid work – where work time is split between on-site and remote work – is more notable. 

Like in-person work, the percentage of hybrid workers fell during the pandemic but then experienced impressive growth. Since Q2 of 2020, the number of hybrid workers soared from 12% to a stable level of around 53% between Q4 of 2022 and Q2 of 2024. 

These numbers clearly indicate that hybrid working arrangements are now the preferred choice.

8. Experienced employees are more likely to work remotely

According to Robert Half, people with greater career experience are more likely to secure hybrid and remote jobs:

• Senior-level (5+ years of experience): 29% hybrid, 17% remote

• Mid-level (3-5 years of experience): 22% hybrid, 13% remote

• Entry-level (0-2 years of experience): 17% hybrid, 10% remote

Remote work benefits and concerns

As remote work continues to evolve and find its place across industries, it brings benefits and challenges to both employers and employees.

1. Remote work and employee retention

Offering remote work options increases employee retention. A study led by Stanford economist Nicholas Bloom found that employees who transitioned to a hybrid model allowing them to work from home two days per week were 33% less likely to submit a resignation.

This reduction in turnover is estimated to have saved the participating company millions of dollars in hiring and onboarding costs. 

2. Remote work and employee work-life balance

Remote work arrangements can greatly improve employees' work-life balance and benefit employers.

According to the US Career Institute, remote workers value not having to commute above all other remote work benefits. Those who work from home save an average of 55 minutes on commuting time, which allows them to spend more time with families and on personal activities.

In addition, much of these time savings flow back to the employer, as non-commuting employees dedicate an additional 23 minutes to their work.

3. Remote work and costs

On average, each remote employee saves their employer $10,600 per year. Adopting remote work arrangements can lead to savings in office rental or purchase, utilities, office supplies, furniture, and other office-related expenses.

Employees can also benefit financially. The average fully remote worker saves up to $12,000 annually by avoiding commuting costs, lunch expenses, and the need for office attire. Hybrid workers can save up to half of this, depending on how many days they work remotely.

4. Remote work and hiring

Remote work options appeal to job seekers and are a top priority for them. 98% of respondents to the 2023 State of Remote Work report would like to work remotely, at least some of the time, for the rest of their careers. The same number would also recommend remote work to others.

No respondent reported a ‘very negative’ experience with remote work, and just 1% felt their experience was ‘somewhat negative.’ The vast majority – 68% – describe remote work as ‘very positive.’

As this ResearchGate study reports, remote work enables companies to tap into a wider talent pool. Even when location requirements are in place, employers can still benefit from expanding their reach beyond their immediate area. 

Hybrid roles also improve companies’ access to talent. By only requiring employees to be in the office part-time, employers can hire from different cities or regions. Without this flexibility, employers might need to offer a relocation package to attract the same candidates.

5. Remote work and productivity

Contrary to initial concerns, studies show that remote work doesn’t negatively impact productivity. In fact, many employees report being more focused and productive while working from home, especially when given the flexibility to create their own optimal work environment.

6. Remote work and company culture

Company culture is one of the most significant concerns for businesses. 29% of American employers think employees must be in the office three days a week to keep a strong company culture. However, transitioning to remote work doesn’t mean company culture has to suffer. 

To adapt, employers must let go of office-centric methods of developing company culture and implement specific culture strategies for remote work. This includes redefining onboarding, ensuring opportunities for communication between employees, and creating a sense of cohesion in the digital environment.

Managing remote teams effectively

Like many aspects of business, the key to managing remote teams is effective leadership. 

Here are our top four tips for managing remote and hybrid employees:

1. Invest in remote work software

Remote work technology offers several key benefits for both employers and employees. It can facilitate many of the requirements for on-site work, such as:

• Real-time communication

• Face-to-face interactions

• Collaboration

• Training and professional development

By investing in remote work software, companies can enhance employee engagement, increase productivity, and drive long-term success in a remote work environment.

2. Foster inclusivity

Spending the whole workday in front of a screen without face-to-face interaction can instigate feelings of loneliness for some employees. According to a Gallup survey, 21% of remote workers reported feeling isolated while working independently. However, this isn’t the norm – and it’s entirely preventable.

Creating space for informal interactions, like water cooler conversations in an office setting, can help remote employees feel connected and part of the team. While 77% of remote employees say their company has systems in place for collaboration and communication, 28% want their employer to create opportunities for employees to socialize with each other.

3. Communicate

Effective communication can help relieve 55% of organizational leaders of their number one concern: not being able to see signs of employee demotivation in remote settings. 

Regular check-ins with remote employees ensure they stay connected to their teams and aligned with their company’s goals and culture. 

Dawn Klinghoffer, head of people analytics at Microsoft, stresses the importance of regular communication with new hires:

“We communicated to managers how important it is that you have one-on-ones early and often with your new hires.”

4. Evaluate and adjust

Employers and employees are still adapting to the evolving landscape of remote and hybrid work, so it’s important to assess and modify remote work strategies and policies regularly.

Most employees believe their employer has become more effective at managing remote work since the COVID-19 pandemic in several key areas:

• Collaborating on new projects

• Securing relationships with new customers

• Coaching employees to succeed

• Innovating products or services

• Onboarding new hires

Continuous evaluation helps ensure that remote work policies enhance rather than hinder team performance and identify areas for improvement.

Level up your remote hiring process with talent assessments

Remote work is here to stay, which makes managing remote teams critical to success. Understanding the latest data gives companies the insights needed to navigate the growing trend toward hybrid arrangements.

The key to hiring great remote employees lies in adopting a skills-based approach and centering company culture. 

TestGorilla’s talent assessments help you build high-performing, productive remote teams by ensuring your candidates have the right skills and their values align with your company’s culture and goals. 

With 400+ science-backed online tests to choose from, you can streamline your hiring process and find the best employees for your remote work environment. Schedule a demo or jump in with a free plan to see how TestGorilla can help you build your fully remote or hybrid team.

FAQs

What percentage of people can work remotely?

As of Q2 of 2024, 80% of US workers spend at least part of their work life working remotely, far outweighing those who work fully on-site. Of this, 53% have hybrid work arrangements, and 27% always work remotely.

What are the benefits of remote working?

Research shows that work schedules allowing remote arrangements can be highly beneficial for employers and employees. Companies benefit from a broader talent pool, lower turnover, and reduced costs, while employees enjoy a more flexible schedule and a better work-life balance.

Are remote workers really more productive?

Several studies report that remote workers are more productive than their on-site or in-office counterparts. Factors such as better time management and fewer distractions contribute to their increased productivity.