Hybrid work boosts job satisfaction without hurting output.
The shift to remote work isn’t to blame for Australia’s post-pandemic productivity slump, according to a new Productivity Commission report.
Instead, the dramatic swings in productivity were largely driven by fluctuating work hours—first plummeting during lockdowns, then surging as the economy rebounded.
While the pandemic created a short-lived productivity “bubble,” the report found the country has since returned to its pre-Covid stagnation.
One lasting change? The rise of hybrid work, with 36% of Australians now regularly working from home—a massive jump from pre-pandemic levels.
Contrary to fears that remote work would tank efficiency, studies show hybrid arrangements—mixing office and home days—have little negative impact on productivity.
In fact, employees value the flexibility so much they’d trade 7-8% of their pay to keep it.
Remote work also cuts distractions, reduces sick days, and boosts job satisfaction.
However, the report warns that less experienced workers may miss out on crucial mentorship by being away from the office.
As the Albanese government pushes to revive productivity, Treasury Secretary Steven Kennedy admits the challenge is steep, with growth rates halving over the past two decades.
Pro-competition reforms and streamlined licensing for skilled workers could help—but for now, the data suggests the office isn’t the only place where work gets done.
Want to see how this shift could reshape your workplace? Dive into the full report to understand the future of work in Australia.
