Economic Impact of ‘Return to Work’ Orders
5 years ago, most of us were navigating the new world of pandemic life and working from home. Offices were empty. We all learned Zoom. Kids were home. This was a shift in our economic lives.
Many found that the challenges were also wed to some benefits found from the new work-life situation. No commuting, though we often wanted to be out of the 4 walls that we were confined to. Familial freedom to spend more time together and less bound by the 9 to 5 AND sometimes we had too much time together. Others discovered that they got way more work done albeit often in PJ’s, random hours and a cocktail instead of coffee.
As things lifted there was and continues to be questions about what returning to work looks like. How do we transition back or to something new? What is the right mix of hybrid work? It is good for people to be together but productivity can be had without an office, right?
In my state of California, Gov. Newsom issued a “Return to Work Order” that changes the current approach for all agencies and departments to be in the office 4 days a week starting July 1. This has been met with protests and more negative fallout. I am sure the merits of this can be debated from every side and every angle, but this got me thinking about the economic shift it can have on us to return to work.
In talking with one of my good friends that is under this new order she illuminated all sorts of little details on top of some more obvious ones. She began her work as a remote employee. I know several government employees that rarely if ever go to the office because all they need to do their work is a computer and the internet. A lot of us are able to do that now. My friend lives 40 minutes away from the office that she is now required to return to. This now adds up to 2 hours of commuting time to her life. That is an economic expense beyond the cost of gas. Time. Energy. Socially.
But what about when she gets to work? There is now no more free parking at her office. There is now a monthly parking expense or feeding the newly installed parking meters.
Others have talked about the shift it has on family life and availability. Those with kids and remote work have been afforded a wonderful luxury of being able to attend kid functions, be available for drop-off and pick-up, drop everything to grab them when the nurse says they are sick and still be able to work and perform job duties. Remote work going away is a direct negative economic impact.
This may not have been an issue 45 years ago when a single income was more common and economically viable, but not today.
For more on the CA Return to Work Order you can check out this article.
https://www.gov.ca.gov/2025/03/03/governor-newsom-orders-return-to-office/
As always, if you come across a financially related article you’d like to send my way please do!
Best place to send them is to me.
More next time!
Jonathan