Only the US Still Working from Home... "Because of Traffic and Spacious Houses"

Office Return Rates Far Below in Europe and Asia
Impact on Regional Economies Dependent on Workers

Three years have passed since the outbreak of the novel coronavirus disease (COVID-19) pandemic, but the United States still shows a high proportion of remote work. This is the exact opposite phenomenon compared to Europe and Asia, where the situation is returning to pre-COVID-19 levels.

The Wall Street Journal (WSJ) reported on the 28th (local time), citing data from real estate service firm JLL, that office occupancy rates in the U.S. are at 40-60% of pre-pandemic levels. Although there are significant regional differences, this is much lower than Europe’s 70-90%. Cities in Europe such as Paris and Stockholm have long surpassed 75%.

JLL stated, “The region with the highest office return rate among workers is Asia, at 80-110%.” This means there are areas where even more workers are commuting than before the COVID-19 pandemic. Major Asian cities like Seoul, Tokyo, and Singapore already exceeded 75% in 2021 or 2022.

[Image source=Pixabay]

The reasons for this phenomenon include differences in public transportation systems and residential infrastructure. Public transportation in Asia and Europe is more reliable than in the U.S., resulting in shorter commute times. Additionally, U.S. workers tend to live in spacious suburban homes, making it relatively easier to create a remote work environment compared to Asian workers living in smaller apartments. According to the OECD’s Better Life Index, the average number of rooms per person is 2.4 in the U.S., significantly higher than Japan (1.9), Germany (1.8), France (1.8), and Korea (1.5).

The U.S. labor market, where supply still does not meet demand, is also a decisive reason why workers can insist on their preferred working styles. Furthermore, IT companies, which constitute a large portion of several major U.S. cities, show a more flexible attitude toward remote work, distinguishing the U.S. from Europe and Asia.

However, on the other hand, the low office return rate among U.S. workers is reportedly causing damage to local economies and municipalities. As office workers do not return to their workplaces, the recovery of businesses such as restaurants that depend on them is slow, and property taxes collected by municipalities are decreasing due to the decline in office building prices.