Manhattan is losing $12 billion a year due to remote work

What’s going on:  

It seems the impacts on society as a result of the pandemic are endless.  

Manhattan is facing a multi-billion dollar crisis, with workers spending at least $12 billion less per year due to less days in the office. Office vacancies are becoming a major problem, and the transit system’s finances are in a severe decline.  

CEOs are becoming increasingly frustrated with their staff, and the fiscal risk to tax revenue is reaching dire levels.   

Why it matters:  

City officials aren’t quite sure how to respond to this phenomenon.   

“If less income tax is being paid in New York City, then it’s hard to figure out how to capture enough value to maintain the subways and invest in the schools and keep the city safe and clean and all the things that really matter,” Comptroller Brad Lander said.  

How it’ll impact the future:  

A Bloomberg analysis of exclusive data from Stanford University economist Nicholas Bloom’s WFH Research group revealed that an annual average of $5,000 less is spent by each employee on food, shopping, and entertainment when they work remotely. 

Working from home is set to greatly affect the economies of many cities, and it’s already begun.