The verdict is in on working from home and the critics are wrong

The Age

29-05-2025

Working at home could boost productivity, the government's own analysis has found, as a major report reviewing the pandemic economy concluded hybrid arrangements are not to blame for Australia's stagnating growth.
The Productivity Commission's first assessment of the 'productivity bubble' at the start of the decade found workplaces that allow employees to work some days in the office and others at home can lead to improved worker satisfaction while maintaining the benefits of interactions at the office.
The first major study by the commission on how the pandemic has shaped workplaces notes evidence on work from home is still evolving. However, initial findings pour cold water on the argument that employees should be in the office five days a week.
'Given most studies find hybrid work to be either neutral or positive for labour productivity, there is no evidence to suggest that the trend towards hybrid working has contributed to the productivity loss phase of the productivity bubble,' the report said.
Before the pandemic, 11 per cent of employees worked remotely but by August 2024 the Australian Bureau of Statistics found 36 per cent of people reported they usually worked from home.
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The commission also found remote work can improve workforce participation – particularly for mothers, workers with a disability and other workers who might find it harder to come into the office five days a week.
'Allowing for remote work reduces geographical barriers to employment and expands the geographical pool of potential employees and employers, which could improve job fit and thus productivity,' the commission said.
The right to work from home turned into a key debate throughout the 2025 election as then-Coalition public service spokeswoman Jane Hume revealed in a March speech that federal bureaucrats would be expected to return to the office five days a week under a Liberal-National government.