Working from home has surged since the Covid-19 pandemic, especially among older, high-skilled professionals in and around London and other major cities. However, new research has revealed this hasn’t significantly changed where people live, or helped spread talent more evenly across the country.
Led by the University of Southampton, in collaboration with the University of St Andrews, University of Birmingham, De Montfort University, and the University of the Arts London, the research found most home workers still follow hybrid patterns, staying within reach of major employment hubs and limiting the potential to reduce regional inequality or boost growth outside South-East England.
The findings show that just over 52% of workers in the UK never work from home, but among high-skilled workers, this figure is just 29%. The majority of those who work from home do so in a hybrid pattern, with at least some days spent in the office.
Professor Jackie Wahba, from the University of Southampton and lead of the study, said: "Working from home is now a normal part of working life, with the potential to change where and how people work. It could offer major benefits, giving both employers and workers more choice and flexibility. But to achieve this, we must tackle key obstacles to residential mobility.
"It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas. But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities."
Hybrid working patterns are still evolving in Birmingham, with the business district adapting to demand for collaboration space. The city is attempting to retain and attract high-skilled talent while addressing entrenched deprivation and economic inactivity. Inclusive growth has become a guiding principle, but as is the case for many cities outside of London, progress will depend on deeper collaboration across local and regional stakeholders.
Professor Anne Green, City-REDI, University of Birmingham The study also found that when high-skilled workers change where they live, housing needs tend to be the driver, rather than jobs. This suggests the idea that working from home will allow lagging regions to attract high earners has yet to materialise, and in fact may not be realised at all.
Co-funded by the Economic and Social Research Council and the Ministry of Housing, Communities and Local Government,
Anne Green, Professor of Regional Economic Development at City-REDI, University of Birmingham, said: "Cities such as Birmingham have had to face major challenges in recent years, such as Brexit and the pandemic. For Birmingham, these challenges further exposed a persistent low-wage, low-productivity equilibrium. Despite this, it remains a top destination for foreign direct investment and has a diverse population and a strong university presence, which provides a rich talent pipeline.
"Hybrid working patterns are still evolving in Birmingham, with the business district adapting to demand for collaboration space. The city is attempting to retain and attract high-skilled talent while addressing entrenched deprivation and economic inactivity. Inclusive growth has become a guiding principle, but as is the case for many cities outside of London, progress will depend on deeper collaboration across local and regional stakeholders."
Interviewees noted some advantages of working from home, such as wider recruitment opportunities, more efficient use of office space, and the ability to attract workers to their regions due to lower living costs. However, they raised concerns about quieter city centres, weaker workplace culture, and the limited ability to work from home in many sectors.
There was broad agreement that local challenges like low skills, economic inactivity, skills shortages, and poor job quality cannot be solved by attracting high-skilled workers alone, and that local economies benefit most when high-skilled workers both live and work in the area.
Professor Wahba, concluded: "We need investment in transport links, fast broadband, schools, healthcare, green spaces, cultural venues, and affordable housing are as important as providing flexible work options in drawing and retaining skilled workers.
"Working from home isn’t yet bridging the gap between regions. Policymakers, businesses, and local leaders need to act to ensure that job flexibility does not exacerbate inequality but is harnessed to support real, long-term regional growth."
Full findings from the project ’Regional differentials, changing working patterns and high-skilled labour mobility’ can be found in the Centre for Population Change and Connecting Generations Policy Briefings.
Anne’s research interests span employment, non-employment, regional and local labour market issues, skills strategies, urban and rural development, migration and commuting, associated policy issues and evaluation.