The Birmingham Economic Review is out now!
This year’s report will provide a comprehensive analysis of the city’s economy amid the wider geopolitical landscape, and actionable measures that businesses and stakeholders from across the city-region can take to drive economic growth.
Read the full Birmingham Economic Review 2025.
Professor Anne Green explores how remote and hybrid working are reshaping where people live and work, influencing migration, commuting, regional labour markets, and ultimately widening or shifting long‑standing geographical and socio‑economic inequalities.
The geography of residences and jobs has evolved over time, shaped by changes in industrial structure and supply chains, technological developments and, increasingly, sustainability agendas.
The Covid-19 pandemic accelerated the adoption of remote/ hybrid/ home working, particularly among high-skilled workers, disrupting conventional assumptions about where people live and work. More generally, advances in information and communications technologies and remote/ hybrid/ home working options may expand migration opportunities and promote a more balanced geographical distribution of the highly-skilled. But such advances could also encourage people to remain where they are instead of moving, especially given the need to take two careers into account in dual-earner households.
So what are the likely longer-term impacts on residential preferences and mobility, commuting patterns, regional labour markets, the relative importance and influence of different cities and regions, and socio-economic and geographical disparities?
Theory and trends
Traditionally, shorter distance moves have been seen as mainly motivated by housing factors, while longer-distance internal migration within the UK has been associated with moves to higher education and employment opportunities. Young people and the highly educated are most likely to move for employment reasons. They tend to move to so-called ‘escalator areas’ with strong labour markets, which helps them progress in their careers and increase their salaries. Attracting high-skilled workers to an area is seen as positive for regional development. Hence it is important that the West Midlands metropolitan area is attractive for high-skilled workers – as a place to both live and work.
What the evidence says: During Covid-19 economic activity shifted away from city cores, reducing demand for consumer services in these hubs while increasing it elsewhere, and heralding the prospect of the return of the suburbs, smaller cities, towns and rural areas. This shift in economic activity threatened tax bases in central areas if jobs did not return. Despite early concerns about the decline of major cities they have remained key hubs for interaction, especially in sectors reliant on face-to-face contact. Hybrid working reduced commuting frequency but evidence suggests that employers in larger cities have a preference for high quality office accommodation in accessible central areas to maximise commuting potential.
It remains the case that most employees remain tied to fixed workplaces and a relatively strong geographical relationship between home and workplace proximity remains intact. Yet traditional daily commuting patterns to fixed workplaces at fixed times are weakening. Fully remote working severs the traditional home-workplace distinction. In theory, this means a worker can choose to reside anywhere.
In the immediate aftermath of the Covid-19 pandemic, working from home hotspots emerged in three types of areas: (1) those with occupational structures amenable to working from home; (2) those with good accessibility but with lower housing costs than large cities, and (3) aesthetically attractive remoter areas. Hybrid working also weakens the home-workplace link, allowing longer but less frequent commutes and greater flexibility in where to live. Previously, individuals and households had to make trade-offs between where to work and where to live, but now moves away from central and inner cities to suburbs and areas beyond, often for lower housing costs, are a possibility for some.
Policy implications
With hybrid working now more prevalent than formerly, places must consider their function and desired future role. For large cities, the evidence suggests that accessibility is a key element of attractiveness, making continued investment in digital and transport infrastructure essential. To attract businesses and high-skilled workers, large cities need to offer public and consumer services, amenities, and a quality of public realm that can sustain collaboration and provide desirable experiences. For residents, these factors are equally important, alongside housing, schools, healthcare, liveable neighbourhoods, and so on. Indeed, housing is an increasingly important factor in residential mobility decisions.
While the shift to remote/ hybrid/ home working, accelerated by the Covid-19 pandemic and supported by advances in ICTs, offers opportunities to reshape work geographies and influence residential preferences, the evidence suggests that it may exacerbate rather than reduce existing regional inequalities. Challenges of inclusion remain, especially given that employers can benefit from a geographically wider talent pool. Hence it is important that local residents are equipped with the skills they need for both existing jobs and those of the future.
This blog was written by Anne Green, Professor of Regional Economic Development and Co-Director, City-REDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the authors and not necessarily those of City-REDI or the University of Birmingham.