Remote work reversal: Workers return to cities despite flexible policies

The post-pandemic exodus from cities has reversed course, with workers relocating closer to major urban centers despite the persistence of remote work policies, according to a comprehensive new study of global hiring patterns.

The analysis, conducted by HR and recruitment platform Deel, examined over one million worker contracts across 37,000 companies worldwide and found that the average distance between employees and major cities has been declining since 2022, after rising during the height of the pandemic.

The data tells a clear story

In the United States, workers have returned to proximity levels last seen in 2021, with similar patterns emerging in the UK and France. This shift occurs even as many companies maintain hybrid or fully remote policies, suggesting that the physical location of employees matters more than previously thought.

Lauren Thomas, economist at Deel, notes that international hiring isn't primarily driven by cost-cutting as many assumed. "That talent still lives in major metro areas, closer to big cities than they have in recent years, and they're a hot commodity for companies around the world," Thomas explains.

Why the reversal matters

The trend reveals several key insights about the evolving nature of work:

Return-to-office mandates play a role - Workers who anticipate occasional in-person requirements are less likely to relocate far from cities, even if their primary work remains remote.

Cultural and lifestyle factors - After several years of pandemic-era remote living, many workers are choosing urban or suburban proximity over rural isolation, suggesting the appeal of city amenities and social connections remains strong.

Talent concentration persists - Despite the promise of global talent access, high-income countries continue to dominate cross-border hiring, with software developers comprising 28% of such hires among top startups.

The AI trainer boom

The report also highlights the emergence of "AI trainers" as a distinct profession, with cross-border hiring for these roles growing by 283% in 2025. This rapid growth reflects the increasing importance of human oversight in AI development and deployment.

Corporate responses vary

The push-pull between remote and office work has created divergent strategies among tech companies. Dropbox, for instance, closed one-quarter of its office space at its San Francisco headquarters in 2023, operating Dropbox Studios for occasional in-person collaboration. Some employees view this flexibility as a valuable perk that enhances work-life balance.

Conversely, Workday CEO Aneel Bhusri advocated for more office presence, suggesting that five days a week of remote work might constitute "too much family time." The company subsequently invested $172.5 million in a new building on the eastern side of San Francisco Bay.

What this means for the future

The reversal challenges the narrative that remote work would permanently decentralize the workforce. Instead, it suggests that even fully remote workers value proximity to urban centers for reasons that may include:

• Access to professional networks and serendipitous connections
• Availability of urban amenities and services
• Potential for occasional in-person collaboration
• Social and cultural opportunities
• Career advancement prospects concentrated in major cities

This trend has significant implications for urban planning, real estate markets, and corporate real estate strategies. Companies may need to reconsider their assumptions about talent distribution and the value of physical proximity, even in an increasingly digital world.

The data suggests that while remote work policies remain popular, the gravitational pull of major cities continues to influence where people choose to live and work, creating a complex landscape where flexibility and proximity coexist in ways that challenge simple narratives about the future of work.