The Strategist

Bloomberg: Manhattan loses $12.4 billion a year due to shift to remote work

02/15/2023 - 10:01

Business districts are experiencing substantial economic effects as a result of the pandemic expansion of remote work and the hybrid mode, in which workers work partially from home and partially from the office.

Ken Lund
Ken Lund
The New York City borough of Manhattan, which is home to the financial district of the city, large banks, several company headquarters, and more, is losing up to $12.4 billion annually as a result, according to estimates by WFH Research, a Stanford University research organization.

The loss resulting from the shift to remote mode, according to WFH Research experts, is calculated by multiplying the $4,700 per person loss by the 2.7 million workers in Manhattan in 2019.

This accounts for the money lost by cafes, shops, and other businesses as a result of many workers' altered schedules. According to experts, employees at many New York corporations now work a hybrid schedule in which they spend Mondays and Fridays at home and the other three days at the office.

Additional data is used to support these calculations. For instance, according to Mastercard SpendingPulse, a research division that measures Mastercard sales, Friday spending in the United States grew by 23% last October compared to the same month in 2019, but only by 11% in Manhattan.