During the weeks before the Omicron variant of Covid-19 arrived in the UK, when there were few restrictions in place, the appetite of people to return to their places of work was lukewarm. Footfall at UK office locations never exceeded 75% of pre-pandemic levels.
This response, together with recent survey findings, points to a substantial and permanent increase in the proportion of work being done from home. Even when the pandemic is over, workplace footfall is unlikely to rise much above where it was last autumn. This will have implications for transport operators, road usage, the demand for office space, and on retail and hospitality spending in city centres.
The bargaining power currently being enjoyed by employees, in the context of a very tight labour market, may not endure. Concerns about rising wages and productivity are likely to prompt many employers to increase investment in automation and digitization.
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