A new report from the Maine Department of Labor (MDOL) has revealed that the rise of remote work in recent years has created a disconnect between the number of jobs in the state compared to the amount of worksites.
According to the MDOL, a “worksite” is defined as “an economic unit, generally at a single physical location, where services are provided, or goods are produced” and appears to be inclusive of home offices for those who work remotely.
Prior to the COVID-19 pandemic, jobs and worksites typically grew at a similar rate, but the significant increase in those working from home during this time produced a notable spike in Maine worksites that was not evenly mirrored by jobs.
The combination of Mainers accepting remote positions that are based out of state and individuals relocating to Maine after being offered a remote work option has led to this dramatic increase Maine’s worksite numbers.
Furthermore, because those who are employed by out-of-state businesses but physically work from within Maine’s borders are included in the state’s employment numbers, the prevalence of remote work has appeared to complicate Maine’s job statistics as well.
The MDOL said in a press release Wednesday that the gap between worksite growth and job growth is not unique to Maine, as it is mirrored almost exactly by national statistics.
The MDOL went on to explain that the majority of remote positions are concentrated in industries where “information and communication technology” are used frequently and “tasks do not need to be completed onsite.”
Although jobs were found to be about four percent higher across the board in March of 2023 compared to five years prior, the extent of this increase varies significantly by worksite size.
Most notably, single-person worksites — presumably representative of remote workers primary — increased 37 percent during this period and accounted for 17 percent of net job gain.
Click Here to Read the Full MDOL Report
“The shift in growth is due to a combination of people moving to Maine while continuing to work for an employer located elsewhere, and of residents of Maine gaining jobs that allow them to work remotely for employers located elsewhere,” the MDOL wrote in its Wednesday press release.
“Jobs are reported on the basis of where work is being performed,” said the MDOL. “For remote workers primarily based in Maine and working for an employer located in another state, their employment is counted here rather than where the employer is located.”
“Much of the net job growth in recent years has been among small worksites with five or fewer employees, many with only one,” said the MDOL.
“The adoption of remote work has led some jobs to be reallocated into different states and different sectors,” the MDOL continued. “This has occurred through the combination of some remote workers choosing to relocate and incumbent residents starting new remote jobs where employers did not previously have an established worksite in Maine.”
Click Here to Read the MDOL’s Full Press Release
According to U.S. News and World Report, remote work is currently three to four times more prevalent than it was in 2019.
Largely echoing one of the trends described by the MDOL Wednesday, U.S. News and World Report found that remote jobs nationwide are primarily concentrated in the tech industry, as well as in the financial and professional services.
In addition to affecting the labor landscape, the rise of remote work has, among other things, also reportedly caused shifts in the real estate market and created a lasting gap between the consumption of goods and the consumption of services.
<span class="dsq-postid" data-dsqidentifier="28404 https://www.themainewire.com/?p=28404">1 Comment
Well, I’m 100% remote with my home business, and my wife is 98% remote from her corporate job, so I’d say things have changed in our favor. I don’t know why any white collar professional would be willing to work in-office at this point.