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Working from home helped the economy to survive the lockdown, and it is clear that a legacy of this experiment is that, where possible, more people are working from home than was the case in 2019. However, the rising cost of heating may see some reversal of this trend. During the pandemic our own energy use for heating went up 10 per cent, as we were both in the house all day.
The latest Central Statistics Office data also shows that, over the last three years, total hours worked across the economy grew on average by just under 2 per cent a year. This was driven by an increase in numbers employed of 3.6 per cent a year, combined with fewer hours per worker. When account is taken of the huge disruption caused by the pandemic, such an increase in labour input signals a very strong performance by the underlying economy.
The rise in labour force participation is not across the board but is concentrated in particular cohorts.The number of under-20s who are working has risen dramatically, by 70 per cent, in the last three years. Almost all are part-time. Students are clearly filling some of the gaps in the retail and hospitality sectors.