COVID-19 has accelerated the digitalisation of working and social interactions. Global lockdowns to contain the pandemic have forced firms and workers to perform a wide range of daily functions through virtual means, and, in turn, have accelerated the uptake and acceptance of remote working, which will likely remain in its hybrid form after the pandemic.

The Covid-19 crisis has brought substantial changes to the way people interact, and firms conduct their business. Faced with containment measures, many workers have needed to adapt to remote working, while firms were also forced to quickly shift activities onto virtual platforms through online services and online ordering, which led to a significant acceleration in the up-take of digitalisation. Although the capacity to adapt is unequal across regions, with large cities hosting the largest share of tele-workable jobs, increasing digitalisation presents new opportunities and indeed challenges, including where workers live and firms locate.

This chapter analyses the impact COVID-19 in daily mobility of people across different types of regions. To this end, the chapter uses two new sources of real-time data at the subnational level: Google-maps lifestyle data for TL2 regions in G7 countries data broken down by different types of mobility (e.g. consumer vs workplace), and Mapbox movement data for United States counties and German TL3 regions. The analysis also matches TL2 information with regional data to assess the relationship between mobility trends during February 2020 and February 2021 and regional characteristics.

This chapter examines trends in remote working across regions in G7 countries. It starts by setting the scene on permanent movement patterns with evidence from the US. It then presents how remote work is distributed across regions and territories in G7 countries, and the association between characteristics of rural regions and remote working potential. The analysis concludes by emphasising the role of digital infrastructure and female workforce participation in regions’ potential for remote work.

This chapter examines the structural effects of COVID-19 on the labour markets in a set of G7 countries. It starts by presenting evidence on the different workers' potential to shift from presence to remote working amid lockdowns and social distancing measures in Canada, Europe and the U.S. Then, for the United States, it documents the uneven effects of the COVID-crisis across groups of workers in the labour market and the importance of remote work for attenuating the adverse effects during the period. Lastly, it discusses the possible repercussions of the crisis on the inequalities in the labour market in the short and medium run.

This chapter sets out possible effects of COVID-19 on the adoption of remote working models and spatial distribution of people and firms, and outlines existent and needed G7 policy responses to benefit from these new trends. The chapter begins by reviewing the results from recent research and surveys on the effects of COVID-19 on remote working adoption and on the spatial decisions of workers and firms. Then, it outlines the G7 policy strategies at national and regional levels to make the most of remote working and attract people and firms. Finally, the chapter examines the policies needed to enhance the long-term attractiveness of non-metropolitan regions.