The year 2020 saw an unprecedented shift in the labor market that emphasized fully remote or hybrid work programs. This change to established career norms swept the professional world rapidly and changed how many employees and employers thought about how office work needed to be performed.
Until the pandemic, remote work was relatively rare, due largely to preconceived notions about its effectiveness. Health safety concerns, however, forced employers to trust their workforce to remain productive during shutdowns and quarantines. Six years later, those on both sides continue to argue about whether a push for return-to-office work is warranted. However, during that time, a permanent mental shift toward the acceptance of remote work had already been established as a valid labor strategy.
The shift in perception carries implications that extend beyond workplace flexibility or how individual employers would handle their workforce. It has turned the needle on a much broader appeal – how tapping into remote talent could boost economic development.
Industrial Aftermath
To understand why this matters to Indiana, it helps to revisit the economic history of many Midwestern communities.
Many small and mid-sized towns in the Midwest/Rust Belt areas grew rapidly during the Industrial Revolution and peaked in prosperity during World War 2, when demand for manufactured goods was extremely high. In the years after the war, many of these towns began a slow but steady reduction as manufacturing was scaled back and moved overseas. South Bend was no exception with the closing of Studebaker. Fort Wayne also grappled with the loss of various manufacturers, and Gary, Indiana became known as a dilapidated city following the closing of the steel plant. Many areas in once-booming Midwest cities were left broken and desolate because of these changes.
In the decades since, Indiana, like most other states, has faced a shortage of skilled labor workers, particularly in the engineering and technological fields. According to the Indiana Business Research Center at Indiana University, only 61% of college grads remain in Indiana after one year, with that number dropping to 55% after five years. These numbers are even more drastic with engineering graduates, meaning the effects of Indiana’s “brain drain” can dramatically influence what businesses can successfully operate in the state.
Yet the nationwide acceptance of remote work is poised to reverse those effects.
Professional staffing and national recruiting company Robert Half reports that fully in-office job postings declined from 83% to 66% in 2023. Further, the company notes that hybrid and remote work rates have stabilized by the end of 2025.
Talent Reclaimed
The growing popularity of remote work has already shown progress in Indiana in terms of mitigating the issue of a reduced talent pool. Indiana has embraced the workforce strategy and is ranked in the top 10 of states for remote workers, according to the National Taxpayers Union Foundation. The work/life balance benefits of remote work appeal to recent graduates who may have otherwise considered job opportunities outside of the state. Additionally, a remote workforce enables companies to seek talent outside of state lines, attracting skilled workers who may not choose to relocate from their current state or country.
In both cases, healthier workforces are invigorating Indiana’s economic development. Even in the state’s most dominant industry – manufacturing -- there are remote opportunities for non-production roles, including engineering, customer service, human resources, and supply chain management.
Remote work can play a key role in shaping design elements and promoting work attraction to communities looking to reinvent themselves such as Gary, where officials have been active in eliminating blight and introducing new partnerships and initiatives for revitalization.
The shift is already visible in new infrastructure investments, demonstrating how remote work strategies and collaboration are shaping innovation hubs, like the 16 Tech Innovation District in Indianapolis. This collaborative work complex has taken up residence in the former Indianapolis Water Company headquarters and strives to bring together working professionals from all backgrounds to facilitate inspiration, team building, and cross-functional idea sharing.
What began as a public health necessity has ultimately become an economic advantage. Remote work alone will not solve every economic challenge in Indiana. But it does expand the ways both innovation and industries can thrive.
