As labor market momentum has slowed, hiring for remote functions is the first segment showing a notable reversal, as the share of new remote job posting in July fell to the lowest level since January, according to JLL‘s Chart of the Week.
“One of my primary tasks has always been to consider a company’s operational objectives and the latest market data to help tenants make educated decisions about their short- and long-term office space needs,” says JLL Managing Director John Pierson. “This has never been more important than today and this latest report tells me that a consultative relationship between broker and tenant will continue to be critical for the foreseeable future.”
While new job postings in the technology, finance and professional services industries in July edged down just 4% from peak volumes, the volume of remote job postings in these industries has fallen by 27% since May.
Remote job listings are becoming especially scarce within government and other public-sector white-collar roles, where the share of remote listings peaked in October 2021 at 22% but comprised just 8% of job postings in July.
Generally, the fastest-growing markets have relied more on remote work to expand employment bases—gateway markets have consistently averaged a lower share of remote positions compared to the country as a whole.
“While office space in great locations with lots of amenities has been very active, metro Phoenix still has an office vacancy rate of more than 20 percent, reflecting a strong inventory of space,” Pierson says. “This includes 6.5 million square feet of sublease space, — a record high for Phoenix that now makes up about 18% of our total available space. When you combine this with moderate new construction and a growing collection of renovated spec office suites, Phoenix is more than able to give companies the options they need to solve for their unique lease requirements.”