A new report from KPMG shows that new work arrangements could boost productivity and employment levels in the UK.
Additionally, the report finds that demand for office space could grow up to 40%, especially in smaller areas as workers look for offices closer to where they live. As a result, cities like Birmingham, Bristol, Glasgow, Leeds, and Manchester could see employment grow as much as 5% to 10%.
KPMG also anticipates that productivity could grow .5% as companies have the ability to tap into a wider variety of talent.
“As we emerge from the pandemic, businesses need to adapt to the new environment they will be facing,” said Yael Selfin, chief economist at KPMG UK. “Some may choose to relocate to larger business hubs to boost profitability, while others in less central areas could see their local customer base profile change. While the overall impact on the UK economy is expected to be positive, the changes ahead could prove challenging for those businesses already saddled by the pandemic.”
While the report highlights how residential towns are expected to see the greatest benefit of working from home and increased office demand, this may not be the same case on high streets in the UK.
Because some of these larger areas are being impacted by the loss of office workers, Selfin adds that landlords will need to reevaluate their building design and incorporate a multitude of offerings that focus on the workplace, hospitality, retail, and more.