The American worker is on a productivity tear and it may have more to do with a surge in working from home than the effects of AI, according to a Stanford economist.
For the past five years, the output for non-farm businesses has increased by a sizable 2% per year, The Economist reported citing statistics from the Bureau of Labor Statistics. This is a marked increase from the 1% productivity growth per year that defined most of the 2010s, and a trend that has taken even Federal Reserve Chairman Jerome Powell by surprise.
Yet, while the hype around AI over the past several years makes it a logical candidate for the main driver behind the productivity boom, Nicholas Bloom, a Stanford economics professor who is known for explaining the Great Resignation of the early 2020s, says it’s more likely work-from-home policies since the pandemic are fueling the trend.
We knew this. Economists were shouting it over and over during COVID, when this productivity boom started as much of the world began working from home.
Microsoft said that people working from home would never work before COVID, and then they saw a massive boost in performance when people did. To the point where they eventually had to openly admit it. Before demanding people return to the offices as soon as they could.
The only people who refuse to listen are C Suite execs, middle managers, and people with a stake in commercial property.
Managers don’t like people working from home because they enjoy lording over their subordinates, which is more difficult when they’re not physically present.
I generally prefer to work in the office as I like my work space and living space to be separate. I also have a short commute (by design) of less than 10 minutes walking.
I imagine moving an existing team from in office to remote would be best case scenario. You get all the existing social relationships and just move them on line.
I’m would be interested to see how those compare to completely remote teams.