NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Economy / Employment

Working from home: Why professional workers should be worried

Other
24 Jul, 2020 11:00 PM6 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The working-from-home revolution has benefited the middle-classes - but it will not turn out well for them. Photo / 123RF

The working-from-home revolution has benefited the middle-classes - but it will not turn out well for them. Photo / 123RF

Upper-middle-class professionals cannot believe their luck. They have, once again, emerged as the great winners from a crisis: ensconced in spare rooms, they are coping so well with the Zoom economy that they want to make it the new normal.

Working from home (or WFH in corporatese) is easier than they previously realised, allowing greater flexibility while saving time and money once wasted on commutes and overpriced sandwiches. No wonder that most bankers, lawyers, consultants, accountants, marketers, tech workers and other office staff don't want to go back to the five-day commute, and many employers plan to save a fortune by obliging them.

Natwest boss Alison Rose is the most recent business leader to describe a "hybrid" future: smaller offices to bring people together, train newcomers and buttress corporate culture, combined with extensive home working. The likes of Facebook plan to be even more radical, allowing many workers to live wherever they like but adjusting salaries downwards for living costs.

Different industries experienced lockdown differently - factory and aviation workers were badly hit. Photo / Boeing
Different industries experienced lockdown differently - factory and aviation workers were badly hit. Photo / Boeing

The digitisation of the economy is being drastically accelerated by Covid, paving the way for the emergence of the first $2 trillion tech companies.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

But this semi-utopian lifestyle revolution, the greatest upheaval in working practices since word processors became ubiquitous in the 80s, is for a minority.

Lockdown has been experienced very differently by blue-collar workers in factories and construction, by shop staff, delivery drivers, gym instructors, doctors, nurses and millions of others. Not for them the delights of what the Centre for Economics and Business Research (CEBR) calls the Loungewear Economy.

For the majority under Covid, it's been a case of working throughout, being furloughed or losing their jobs in the most devastating economic calamity in a generation. The great class divide is now between those who can work remotely - up to 40 per cent of the total according to LEK Consulting - and those who cannot. Or so the self-satisfied, upper-middle-class office workers have convinced themselves.

They shouldn't rejoice too soon. When pushed to its logical conclusion, the working-from-home phenomenon has the potential to annihilate the middle class' vice-like grip on the best jobs. Their bid to commute less will cost the jobs of hundreds of thousands of support staff, sandwich shop assistants, security guards and public transport workers. But they, it turns out, will have the last laugh.

Advertisement
Advertise with NZME.

Covid shows that proximity needn't matter as much. That is great for wealthy commuters in the short term, allowing them to relocate from £1.5 million shoeboxes in Battersea to mansions in Bromsgrove. But if workers can be anywhere, why limit oneself to the UK?

If London-based employers can hire people who live in Newcastle, Manchester or Sheffield, why not Australia, Bangalore or Poland?

If workers no longer need to sit cheek-by-jowl in central office locations all of the time, legal and immigration barriers to recruiting foreign workers fall away. It becomes easier to employ Romanian-based IT staff rather than UK-based developers, even when the costs of occasional Ryanair flights and Travelodge stays to the office are accounted for.

This will spectacularly derail the middle-class gravy train. Until now, upper-middle-class professionals had remained shielded from one aspect of globalisation – production and jobs transferred to cheaper, lower-pay locations – while enjoying another – earning more by selling globally. This explains why City wages have shot up, while those of unskilled people have fallen. Working from home means that the great protective barrier cossetting office workers has been ripped away.

Discover more

Banking and finance

ANZ takes $22m stake in Pacific Edge

24 Jul 12:41 AM
Economy

NZ following Australia on W-shaped recovery - economist

25 Jul 08:48 PM
Business

The office will never be the same

24 Aug 07:00 AM
Employment

Out of office: He can't quit the office

25 Aug 05:35 AM

Competition for jobs goes worldwide

Suddenly, every office worker is competing with every other office worker in the world - at least those who speak adequate English. The outsourcing of support staff was an early sign of things to come. The CEBR calculates that the post-virus equilibrium will mean 25-30 per cent of the workforce working from home on any one day, compared with 11.9 per cent in 2019. But where, and in which country, will "home" be? Millions more jobs have become exportable.

In the short term, lower-paid workers will lose: Shore Capital estimates that up to a quarter of the time office workers were based in urban centres will now be spent in suburbs, meaning more home cooking and a 20-30 per cent decline in restaurants. But having a job that must be based in Britain will become an advantage. This is good for surgeons and plumbers, but not for bankers, HR personnel or architects.

There are many other ways in which the middle classes will be disrupted. Working from home requires stricter supervision to make sure people deliver; this will weed out not just the bluffers, presenteeists and con artists, but also non-jobs in "woke corporations".

Disruption and redistribution

There will be a redistribution of power from extroverts to introverts, from those with good verbal skills to those with better writing abilities. Empathy will be valued more highly as face-to-face communication diminishes.

The new order will be bad for the upper-middle-class Left-illiberal consensus, too. The globalisation of the jobs market will destroy the idea that trade inevitably focuses on neighbouring regions – the anti-Brexit "gravity model" will be disproved.

The working-from-home revolution will also sprinkle Champagne socialists into Tory areas, making urban refugees less Left-wing (by tackling the economic cause of their discontent, including house prices) and exposing them to other ideas and values. It will level up towns, villages and rural areas, bolster home-ownership and car transport, and bankrupt public transport.

Advertisement
Advertise with NZME.

Countries will need to work harder to remain attractive. World-class internet will be crucial, as will larger homes. Hiking taxes will become intolerable – in a world of unprecedented economic mobility, jobs will simply vanish if states seek to fleece taxpayers – and there will be an extra premium on good schools. The Government will need to reform universities to ditch useless courses.

The upper middle classes are blissfully unaware that they are sitting on the same ticking timebomb that detonated under blue-collar Britain 50 years ago.

They'd better enjoy their work-life balance while it lasts.

- Telegraph Media Group

Save

    Share this article

Latest from Employment

Premium
OpinionUpdated

Liam Dann: The upside to this painfully slow economic recovery

22 Jun 07:00 AM
Business|economy

Thinking of retiring? Nearly one in two Kiwis still working when they turn 65

10 Jun 07:00 AM
Premium
Opinion

Liam Dann: Cheer up, Kiwis - and go shopping

07 Jun 05:00 PM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from Employment

Premium
Liam Dann: The upside to this painfully slow economic recovery

Liam Dann: The upside to this painfully slow economic recovery

22 Jun 07:00 AM

OPINION: This recovery is making us sweat, but that might be a good thing in the long run.

Thinking of retiring? Nearly one in two Kiwis still working when they turn 65

Thinking of retiring? Nearly one in two Kiwis still working when they turn 65

10 Jun 07:00 AM
Premium
Liam Dann: Cheer up, Kiwis - and go shopping

Liam Dann: Cheer up, Kiwis - and go shopping

07 Jun 05:00 PM
Premium
First look at $1b warehouse hub by James Kirkpatrick Group

First look at $1b warehouse hub by James Kirkpatrick Group

07 Jun 12:00 AM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP