Many bosses want to get their workers back to work. In an interview with Fox Business, the CEO of Blackrock said that his company was going back to work to bring down inflation in the U.S.
U.S. labor productivity has fallen due to remote work. He argued that it would lead to rising productivity that would offset some of the inflationary pressures.
According to an internal email seen by Yahoo Finance, on the same day, there was an announcement that employees would be asked to come into the office three days a week. Rob and Manish wrote in the email that time is how they deliver for clients. They wrote that exceptions to the rule would be rare.
The drive to get people to return to the office is going to be a key element in bringing down inflation, according to the boss.
A request for comment was not responded to by the company.
The US Department of Labor said on Thursday that labor productivity fell in the second quarter. Productivity fell in the first quarter. Increasing wages are not matched by an increase in output, pushing businesses to raise prices in order to make up the difference.
The consumer price index didn't change between June and July but it was still 8.6% higher than a year ago.
Wall Street banks are trying to get back to the office. COVID restrictions on in-person work, such as requiring vaccinations or regular COVID tests, will be removed by Goldman and Morgan Stanley after Labor Day.
There are other Wall Street CEOs who try to get people to come back to work. On a call with wealthy clients, Jamie Dimon suggested that in-person work fostered diversity, calling the office a "rainbow room" and warning that remote workers were living in homogeneity.
Economists don't want to read too much into the recent drops in labor productivity. The figure can change a lot from quarter to quarter due to changes in output or the labor force. Productivity is affected by the combination of falling GDP and strong jobs numbers.
The president of the Economic Policy Institute suggested to Fortune in May that some people might return to work in lower productivity jobs because of falling productivity. The measurement of low productivity does not mean that an employee is easy to work for.
According to a survey conducted by the Federal Reserve Bank of New York in August, executives report lower or unchanged productivity from remote work, while employees argue that remote work increases their output.
In July, Robert Gordon and Hassan Sayed wrote a paper for the National Bureau of Economic Research that said sectors that allowed for remote work saw higher gains in productivity during the Pandemic. Productivity declined or stagnated in sectors that could not allow remote work.
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