The COVID-19 pandemic triggered a massive shift to remote work, with the rate of fully remote work jumping from 6% to 18% between 2019 and 2021. Despite widespread return-to-office mandates, new data from the Federal Reserve Bank of Minneapolis reveals that remote work has proven remarkably sticky.
Little Change in Two Years
According to the Census Bureau's Current Population Survey, nearly 22% of U.S. workers were working from home at least some of the time in 2025—down less than 1 percentage point from 2024. This stability persists despite a surge in return-to-office announcements.
The share of hybrid workers slightly increased, while fully remote workers saw a minor decline. Average hours worked remotely also remained steady, dropping from 27 to 26 hours per week.
Geographic and Industry Variations
Remote work rates vary significantly by location. Washington, D.C., Massachusetts, and Colorado lead the nation, while states like Mississippi, Alabama, and Arkansas have the lowest rates. Industry composition and educational attainment drive much of this variation.
Professional services, finance, and health care have the highest concentrations of remote workers. However, some sectors experienced notable shifts:
- Public administration: Remote work share dropped 6 percentage points due to federal and state return-to-office policies.
- Information sector: Remote work rate fell about 5 percentage points, tracking with mandates from major tech companies like Amazon and Meta.
The Changing Labor Market
As the labor market cools, workers have less leverage to negotiate flexible schedules. Remote work, once a key perk in a tight labor market, is evolving—but slowly. The data suggests that while some sectors are pulling back, others are gaining remote workers, keeping the overall rate remarkably stable.
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