WFH Had Economic Impacts in Manhattan

It has been nearly three years since the beginning of the Covid-19 pandemic and some city centers are still feeling the consequences of it.

Ever since the Covid-19 pandemic remote working has become extremely popular, despite there now being little reason for employees to stay home from the office many are still reluctant to return to a traditional work environment. While this is generally not a problem for companies, researchers have found that it is continuously having negative impacts on the service industry.

Within the city of New York, it is general practice for employees to work in the office Tuesday, Wednesday, and Thursday while staying home on both Monday and Friday. With nearly 30% fewer days in the office, there has been a significant drop in consumers going out to eat or shopping on these days.

Researchers from Stanford University have concluded that on average a regular office employee spends $4,661 less on meals, shopping, and entertainment each year. Similar numbers are seen throughout San Francisco and Chicago with reduced spending of $3,040 and $2,387 respectively.

Within Manhattan alone, the combined reduced spending is estimated to equal $12,4 billion in lost sales for the service industry each year.

Source: Bloomberg