Teleworking, which expanded greatly during the Corona epidemic, moderated the epidemic’s impact on employment and economic activity, according to a report published today by the Bank of Israel. Of commercial activity.
A report published today by the Bank states that “the Corona period revolutionized the scope of remote work, which was critical to mitigating the effects of closures on business activity, the economic situation of households and their well-being, and therefore also macroeconomic activity. During the last three quarters of 2021, the rate of combining telework has stabilized at a low level compared to the closure periods, but the combination remains a significant work arrangement, especially in industries and high-productivity workers. In addition, it enabled the flexibility of employment in the face of the high morbidity that still prevailed, during its periods of increase, and the restrictions that followed, and was a component in the working conditions of women, especially mothers of young children.
The differences in remote work patterns reflect gaps in labor productivity between those who can benefit from this opportunity for those who cannot, and these are correlated with geographical location. Changes in the geographical structure of economic activity, including the distances between it and the workers’ places of residence, and the spatial distribution of commercial activity may take a long time. The possibility of remote work became more effective during the Corona period, and its implementation increased the supply of quality jobs for those living in areas where supply was limited. As a result, the possibilities for reducing inter-regional gaps in the labor market have increased. If these are indeed reduced, it may help reduce inter-regional disparities in other areas. ”
The virtues of remote work and its role in the corona period
According to the bank, the expansion of remote work, which characterized many of the OECD companies during the closure periods and corona restrictions in 2020 and 2021, enabled business continuity in many workplaces. The transition to remote work is especially suitable for employees whose tasks are performed by technological means, such as a computer, and for those whose autonomy in performing the work is great. Facilitate the transition Previous experience in remote work and previous adoption of technologies that enable remote work, as cloud services and communication networks and supporting legislation (OECD, 2020).
The industry, occupation, education and affinity between the employee and the employer in the type of employment contract were found to be correlated with the scope of the remote work. Remote labor moderated the plague of the plague in employment and economic activity, and therefore its economic importance in this period is of great importance. Businesses whose activity was not considered essential during the Corona period and whose operation was not possible remotely, such as some of the industries of industry, transportation, trade and culture, operated during the period in a partial format, and at times their activity and employment were completely disabled. Thus, the difference in the ability to work remotely created a difference in the impact of the crisis between employees and employers that this option was available to those who could not enjoy it.
The virtues of teleworking were especially prominent during the plague, but they are also many in routine, and yet, before the plague the assimilation of telework was relatively low, even though the technology existed. Remote work may expand labor markets to geographically remote areas, increase employment participation of underprivileged populations, including people with disabilities, and improve employee-employer matching; It reduces the load of commuter traffic on transport infrastructure during peak hours – but as commuting to work is replaced by commuting for other needs its overall impact on commuting is unclear. Remote work may also improve the allocation of time between employees between work, household chores and leisure activities, because it saves time getting to work and allows flexibility in time management during the day. In this context, expanding remote work opportunities may contribute to reducing gender gaps in the labor market.
An empirical study found that the possibility of working from home increases the supply of working hours of mothers compared to fathers. Add to this the findings of time-use surveys in different countries, which show that remote work involves time-saving, which was allocated for travel. Fathers who work from home spend more time caring for children, but as for the impact on their involvement in household chores the findings are inconclusive.
Another effect that remote work may have is the development of the local economy in residential areas: it is found that working to a large extent from home may lead to a decrease in the consumption of services in city centers and their replacement by consumption in residential areas. Remote work may also strengthen community ties – because employees spend more time in their place of residence. Empirical findings suggest that the benefits of the possibility of integrating telework are reflected in the employee’s willingness to “pay”, in terms of wages for the employment agreement that includes telework.
Remote work also has drawbacks. If its scope is high, it may intensify managerial problems and make it difficult to communicate directly in the workplace, which is important for transferring knowledge between employees, creating a broad professional and organizational perception and employee satisfaction, and therefore may also impair firm productivity. In this context it is worth noting that the social encounter created in the workplace is also important for the well-being of the employees. Remote work, especially from the homes of the workers, may also make it difficult to separate their time devoted to work from that devoted to other occupations.
Employers who before the epidemic had not experienced remote work were first required to formulate and execute it; This required an effort to put in place communication infrastructures, end equipment and technological applications as well as to adapt the working methods, organizational communication and management to remote work so that the damage to productivity would be minimal. In the cliff of times, many employers have adopted remote employment even while integrating low-productivity workers, and have faced technological barriers, including shaky communications infrastructure and a shortage of end equipment, and unadapted organizational and managerial systems. In addition, some of the workers from their home also looked after children – so that the environmental conditions were also at the back of the remote work.
Based on ad hoc surveys among employers conducted by the CBS during the Corona crisis, the Bank of Israel concluded that for some employers, working remotely in the eye of the crisis was perceived as a constraint on activity, and that they intended to reduce it when it passed, but to a greater extent than before.