A new data insight paper released today by the Committee for Economic Development of Australia (CEDA) reveals that Australians working from home since the COVID-19 pandemic are reaping significant time and financial benefits.
Less Time Commuting, More Time for Work
The paper, Working from home is saving Australians time and money, by economists James Brooks and Danika Adams, shows that Australians working from home have reduced their commutes by an average of three hours per week. This time-saving is valued at an estimated $5308 annually, based on the average wage of Australians who work remotely. According to the analysis of the latest Household Income and Labour Dynamics in Australia (HILDA) survey data, workers who work from home commute 15.7 per cent less than those working in offices.
Work More, Earn More – Despite Reduced Wages
Despite the savings in commuting costs and time, the study also found that people who work solely from home are working nearly 20 per cent more hours than those who do not. As a result, workforce participation has increased by 4.4 per cent when compared to pre-COVID trends.
These findings highlight a key trend: working from home offers more than just a reduction in commuting time—it can also lead to longer working hours and increased job opportunities for people who otherwise may have been excluded from the workforce.
Barriers Removed for Parents and People with Health Conditions
One of the more significant outcomes of the shift to working from home is the increased participation of groups that previously faced barriers to on-site work. Mothers of children aged under four and individuals with impactful health conditions, for example, are now more likely to secure employment, thanks to the flexibility that remote work provides.
A Deeper Look into Economic Impact
The research also modelled how workforce participation would have changed between 2017 and 2019 if COVID-19 hadn’t occurred. In a fascinating twist, it was found that participation was 4.4 per cent higher in 2023 than it would have been had the pre-pandemic trend continued.
While the precise contribution of working from home to this shift is difficult to isolate, the analysis suggests that the practice has clearly played a role in the growth of workforce participation and improved work-life balance for many Australians.
Sustaining the Benefits of Working from Home
Given the broad economic and social benefits, the research suggests that the gains made through remote work should be maintained, even as the labour market softens. The paper also calls for continued focus on improving management strategies, employee engagement, and mental health to ensure productivity and wellbeing as work-from-home arrangements evolve.
This latest research paper is part of the ongoing Progress 2050 focus, which aims to foster a dynamic labour market that meets Australia’s skills needs and ensures opportunities for everyone.
In short, while working from home may have cost some workers in wages, the savings in commute time – and the ability to work more hours – have brought net benefits for Australian workers. As these trends continue to evolve, a comprehensive approach to maintaining and enhancing the remote work model will be crucial for supporting the nation’s future workforce needs.
Read the full report.