OPPORTUNITIES OF TELEWORK AND ITS IMPACT ON THE ECONOMY

Abstract

The transformation of the labour market towards more flexible work conditions took place long before the Covid-19 pandemic. In 2019, in the EU Member States, on average, 14.4% of the total number of employees fully or partially (sometimes) worked remotely. One of the main factors explaining the different prevalence of teleworking in EU countries is the differences in the structure of economic sectors. In countries, where the share of employees in high-tech and science-intensive sectors is higher, teleworking is also more prevalent. Teleworking can increase workers’ productivity, reduce costs (such as transport), but it can also increase income uncertainty and can lead to an uneven workload, as well as leading to changes in labor demand and supply across sectors, occupational groups, and regions. Too much teleworking can reduce employee efficiency and long-term productivity gains, therfore the challenge for the future is to find the optimal balance between teleworking and «traditional» work. The article deals with the assessments of the trends in the development of remote work in the EU and Latvia, the factors contributing and limiting its spread, as well as the impact of teleworking on the economy. It was investigated the nature of teleworking, its varieties and dynamics during the last decade, the impact of teleworking on productivity (worker efficiency) etc. As a result of the analysis, the advantages and disadvantages of teleworking for employers, employees and the state were identified, as well as the most important problems of teleworking and policies to improve the situation were described. It has been concluded that one of the main policies should be to enhance digital knowledgeability and skills in society as a whole, with particular emphasis on certain target groups (e.g., the seniors, people with disabilities, etc.). The lack of social support infrastructure for employees, such as childcare facilities, is another challenge for increasing teleworking, especially among women.