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The Future of Work and CitiesThe Future of Work and Cities

January 2020

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The Future of Work and Cities

Table of Contents:

INTRODUCTION

SURVEY AND METHODOLOGY

KEY FINDINGS

The Future of Cities

01 — COMMUNITY

  02 — ECONOMY

  03 — HOUSING

  04 — MOVING

05 — CLIMATE CHANGE

The Future of Work

  06 — TALENT

  07 — AUTOMATION

  08 — INNOVATION

  09 — WORK-LIFE BALANCE

  10 — BENEFITS

CONCLUSION

APPENDIX

3

4

10

13

16

23

27

28

30

31

34

36

37

41

42

Contents

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The Future of Work and Cities

INTRODUCTION Three major trends will shape the 21st century: urbanization, automation, and climate change.For the first time in history, the majority of people are living in cities both big and small. By 2030, roughly two-thirds of the world’s population is projected to live in urban areas.1

Meanwhile, a technological revolution is poised to impact millions of jobs. According to McKinsey & Company, automation alone may displace up to 30 percent of the American workforce. By 2030, between 400 million and 800 million people globally may need to find new jobs.

While these shifts impact the global workforce, global temperatures, carbon emissions, and sea levels are rising, making the impacts of climate change an imminent threat for people in cities around the world.

As urbanization continues, increasing housing costs will result in longer commutes and the built environment will continue to grow, increasing carbon emissions and further exacerbating the effects of climate change.

The world is changing quickly. These trends will test the way we live and work, and how we meet the challenges and opportunities of these trends will shape the future of work and cities.

1 https://population.un.org/wup/Publications/ Files/WUP2018-KeyFacts.pdf

Introduction

WeWork and the Aspen Institute’s Future of Work Initiative have partnered2 to explore these trends through the lens of the people who are experiencing them.This report, based on a survey that went out to over 30,000 respondents in 50 cities around the world, seeks to better understand how the global workforce thinks about the economy, their communities, and the solutions that can shape the future of work and cities. By examining the opinions and perspectives of thousands of people around the world, identifying common challenges, and highlighting new solutions and opportunities, we aim to contribute to a conver- sation about the changing landscape facing people, businesses, and decision-makers in cities.

About the Aspen Institute’s Future of Work InitiativeThe Aspen Institute’s Future of Work Initiative is a nonpartisan effort to identify concrete solutions to address the challenges American workers and businesses face due to the changing nature of work in the 21st century. Established in 2015, the Initiative is driven by the leadership of Honorary Co-Chairs Senator Mark R. Warner and Purdue University President and former Governor of Indiana Mitch Daniels, and Co-Chairs John Bridgeland and Bruce Reed. Executive Director Alastair Fitzpayne leads the Aspen Institute staff, based in Washington, D.C

2 This is a nonfinancial partnership; in the course of the research and analysis, no financial contribution was made by WeWork to Aspen Institute’s Future of Work Initiative.

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The Future of Work and Cities

32 1

About WeWorkWeWork provides members around the world with space, community, and services through both physical and virtual offerings. Its mission is to create a world where people work to make a life, not just a living. WeWork has 625 locations in over 127 cities and 33 countries. Our 609,000 memberships repre-sent global enterprises across multiple industries. We are committed to providing our members around the world with a better day at work for less.

SURVEY AND METHODOLOGY Our teams developed a survey to shed light on how the macro forces of urbanization, automation, and climate change are playing out for people in cities around the world.

01 — THE CITY INDEXRespondents were asked a set of questions and state-ments about key factors of city life and how likely they are to recommend their city.

02 — THE FUTURE OF CITIES A set of questions focused on what’s challenging and important in cities, what challenges cities face, the climate, and if people are considering moving.

03 — THE FUTURE OF WORK A set of questions focused on how people and businesses are preparing for changes from automation, how benefits are affecting their work and their businesses, and exploring policy solutions.

Survey and Methodology

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The Future of Work and Cities Survey and Methodology

01 — THE CITY INDEXRespondents were asked a set of questions and statements about key factors of city life and how likely they are to recommend their city.

CreativeHow much do you agree with the following statement?

“My city has a thriving creative, maker, and artistic community.”

EconomyHow much do you agree with the following statement?

“I am optimistic about my city’s economic conditions in the next two years, and believe it is a good place to find a job or grow a business.”

Family How much do you agree with the following statement?

“This is a good city for families and raising children.”

Community How much do you agree with the following statement?

“My city has a strong sense of community and creates a culture of inclusion and belonging that is welcome to diversity.”

WalkabilityHow much do you agree with the following statement?

“My city is very walkable and I am very satisfied with the overall urban environment of my city.”

InnovationHow much do you agree with the following statement?

“My city has a thriving innovation ecosystem.” (For example: clusters of innovators, startups, and bigger companies networking and collaborating.)

InfrastructureHow much do you agree with the following statement?

“I am satisfied with the quality of public infrastructure in my city (roads, transportation, transit, cleanliness, water).”

Business FriendlinessHow much do you agree with the following statement?

“My city, in terms of taxes and regulations (‘red tape’), is friendly to entrepreneurs and businesses, and is a good place to start or grow a company.”

HousingHow much do you agree with the following statement?

“I am satisfied with the quality and affordability of housing in my city.”

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The Future of Work and Cities

02—THE FUTURE OF CITIESRespondents were asked a set of questions focused on what is important for people in cities, what challenges cities face, the climate, and if they are considering moving.

Survey and Methodology

City NPS ScoreOn a scale of 1 to 10, how likely are you to recommend your city to a friend or professional acquaintance as a place to live and work?

Local ChallengesWhat are the three greatest challenges your city faces?• Concerns with safety, clean streets, and crime

• Homelessness

• Green spaces and outdoor recreation

• Strong sense of community

• Inequality and insufficient wages

for middle-class workers

• Sophistication and efficacy of city government

• Equity, diversity, and inclusion

• Quality and affordability

of childcare and education

• Limited career opportunities

• An informed and active local citizenship

• Talented and abundant labor market

• Abundance of restaurants, retail, and nightlife

• Affordability and quality of housing options

• Walkability, bikeability,

and access to public transit

• Capital to support innovation

• Cost and burden of taxes & regulation

Considering MovingAre you considering moving from your city in the next two years?

City Characteristics What are the three most important city characteristics to you?• Equity, diversity, and inclusion

• Business friendly—low taxes and less regulations

• Walkability and urban environment

• Sophistication and efficacy of city government

• Quality public infrastructure

• Good for families

• Strong economy

• Affordability and quality housing options

• Thriving innovation ecosystem

• Thriving artistic community

Talent FlowsIf you moved, what city (or cities) would you most likely consider moving to?

Climate 2030 PolicyHow much do you agree with the following statement?

“I believe my city should develop a plan and strategy to use 100 percent clean energy and be carbon neutral by 2030.”

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The Future of Work and Cities

Automation Benefits (Businesses)How much do you agree with the following statement?

“My business stands to gain from automation, artificial intelligence, or machine learning in the next five years.”

Automation & Hiring (Businesses)How much do you agree with the following statement?

“Automation, artificial intelligence, and machine learning will change how I hire workers in the next five years.”

Automation Threat (Workers)How much do you agree with the following statement?

“I am concerned by automation, artificial intelligence, or machine learning replacing my job in the next five years.”

Finding Talent in CitiesHow much do you agree with the following statement?

“I have found it difficult to find the talent I need for my business in my city.”

In-Demand RolesWhat roles are you going to hire the most of in the next 2–5 years?

Keeping Talent in CitiesHow much do you agree with the following statement?

“It’s difficult to compete for and retain quality talent in my city.”

Hardest Roles to Hire ForIn general, what are the hardest roles for you to hire?

Upskilling & ReskillingWould you hire someone who doesn’t have a college degree but has the right skills, training, or experience for the job developed at a coding, design, or business bootcamp?

ApprenticesWould you consider taking on apprentices that would lead to a job interview for a full-time role?

Skills Training AccountsWould you consider contributing to a career and skills training savings account for your employees if the government provided you 25 percent tax credits for your contributions?

03—THE FUTURE OF WORK Respondents were asked a set of questions focused on how workers and businesses are preparing for changes from automation, how benefits are affecting their work and their businesses, and how policy solutions could address the changing nature of work.

( 1 / 2 )

Survey and Methodology

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The Future of Work and Cities

Worker ValuesWhat do you value most in the company

you work for? Select up to 3.

• Work-life balance

• Opportunity for career advancement

• Diversity, equity, and inclusion

• Business outlook

• The people I work with and

the sense of community

• The way I feel when I'm at work;

the energy around me

• Quality of leadership

• The space I work in

• The mental and professional challenge

• Benefits

• The way my individual contribution helps

my company to make a larger impact

• What my company stands for and what we

want to achieve in the world (our mission)

• Pay

Benefits (Businesses) How much do you agree with the following statement?

“The costs of providing benefits are affecting my ability to grow my business or hire and retain talent.”

Benefits (Workers)How much do you agree with the following statement?

“The cost or access to any of the following benefits (health, retirement, parental) would potentially prevent me from changing jobs or becoming an entrepreneur.”

Benefits (Access to Healthcare)I access health insurance through:• A spouse’s employer

• My own employer

• A professional association

• I do not currently have health insurance

• Government (e.g. Medicare/Medicaid, NHS)

• A parent

• Individually through a private insurer

• Other

Benefits SatisfactionHow much do you agree with the following statement?

“I am satisfied with my current set of health benefits.”“I am satisfied with my current set of retirement

benefits and / or plans.”“I am satisfied with my current set of parental benefits

(such as paid parental leave).”

03—THE FUTURE OF WORK Respondents were asked a set of questions focused on how workers and businesses are preparing for changes from automation, how benefits are affecting their work and their businesses, and how policy solutions could address the changing nature of work.

( 2 / 2 )

Survey and Methodology

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The Future of Work and Cities Survey and Methodology

Survey Methodology:Responses from more than 30,000 people, including 7,500 WeWork members in 50 cities around the world, were collected and analyzed (a full list of cities is included in the Appendix). The 30,000 people surveyed included workers and business decision-makers, defined as respondents who identified their role at work as

“Senior Management, Executive (CEO, COO, CFO, President, etc.) or Sole Proprietor or Freelancer.”

The survey was sent via an online questionnaire between December 2018 and April 2019. In an effort to survey a variety of places and people, both large and small cities were selected, including cities with and without WeWork members. Each of the cities included have responses from at least 500 people who are employed, either full- or part-time. For the 41 cities surveyed where WeWork has locations, those cities have at least 600 responses: 500 people in the general workforce and at least 100 WeWork members. We chose to survey people who were working full-time or part-time as opposed to people that were looking for work, in school, retired, or otherwise out of the labor market, in order to focus on the experiences of people who are currently working.

All responses were collected using the online survey platform Qualtrics. For the general workforce, the team worked with Qualtrics and survey consulting group Clearpath Strategies to send the survey to a panel of eligible adult survey respondents. For WeWork members, the survey was disseminated via e-mail and promoted by community teams in buildings.

Given the size of the sample, the survey data reflect-sthe opinions of thousands of people across ages, roles, occupations, company sizes, and industries. As a result, responses can be analyzed from specific groups—such as freelancers or sole proprietors—separately from others.

Methodology: The City IndexThe questions contained in The City Index relied on a methodology that allows for the comparison of responses across cities on the key factors in the Index, taking into account the ways in which people in different parts of the world typically respond to surveys. The share of people who agree with their city’s key factors were totaled on a curve, resulting in a single 1-to-5 score for each key factor in every city.

A score of 5 on the Index for a particular key factor indicate that the largest share of people in a city agree with the statement about that factor, higher than the share of people who agree with factors that score a 4 or lower. A score of 1 indicates that the smallest share of people agree with a statement about that factor, lower than all factors that score a 2 or higher. A full description of the methodology used in the Index can be found in the Appendix.

In analyzing responses to all questions outside of the Index, the share of people who agree or disagree with a particular statement or question is generally reported, unless otherwise noted.

A more detailed methodology, including a description of sampling weights and collection methods, can be found in the Appendix.

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The Future of Work and Cities Executive Summary & Key Findings

EXECUTIVE SUMMARY & KEY FINDINGS

People are wrestling with the promises and challeng-es of urban life. Respondents say their cities are centers of creativity and community and they are optimistic about their city’s economic prospects, but they are frustrated by critical issues of livability –from affordable housing and walkability to quality infrastructure. All of this is happening against the backdrop of widespread restlessness, where nearly a third of people in surveyed cities are considering moving in the next two years.

Another duality is observed through shifting work trends. Business decision-makers anticipate automa-tion will change the way they hire, but fewer workers are concerned about their jobs being replaced. As technology and automation change tasks, jobs and industries, the skills needed for the jobsof the future are evolving as well. More than a third of business decision-makers are struggling to attract and retain talent generally, and technical talent specifically, to fill these roles in their cities.

New challenges emerging from the changing nature of work, alongside trends where people value work-life balance and a sense of community from their employers as highly as pay and benefits, are leading to rising support by business leaders and workers for new models and policy tools at the local and national level that better reflect how we want to live and work today and in the future.

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The Future of Work and Cities

01 — COMMUNITYPeople in almost every city surveyed describe their city as a thriving center of creativity and community, and a good place to raise a family. Respondents in 46 of 50 cities surveyed regard their city as home to a thriving, creative community. Additionally, 39 of 50 cities are rated highly in having a strong sense of community, and respon-dents in 34 of 50 cities rate their city as a good place to raise a family.

02 — ECONOMYPeople in most cities are optimistic about their city’s economy, especially in comparison to the national economy. Respondents in 38 of 50 cities are optimistic about their city’s economy. Over the next two years, nearly two-thirds of people say they are optimistic about their local economy, compared to less than half who are optimistic about their national economy.

03 — HOUSINGNearly every city is facing a housing crisis. Affordability and quality of housing are by far the top-ranked challenges cited by respondents, followed by homelessness. While people in less than half of surveyed cities (24 of 50) give their city a high score on its walkability, there are no places where people score their city high on both housing and walkability.

04 — MOVINGCities are at risk of losing current residents and talent. Over one-third of people in cities surveyed are considering moving in the next two years.

05 — CLIMATE CHANGEPeople in every city agree their city should develop an aggressive climate action plan. The majority of respondents in 49 out of 50 cities surveyed—and 70 percent of respondents overall—agree that their city should develop a plan and strategy to use 100% clean energy and be carbon neutral by 2030.

Top 10 Findings From the Survey

06 — TALENTBusinesses face fierce competition for talent. One-third of business decision-makers report having a hard time finding talent in their cities, while nearly 4 in 10 business decision-makers say it is difficult attracting and retaining talent.

07 — AUTOMATIONMost business decision-makers are planning for automation, but most workers are not. At least half of business decision-makers say automation, AI, and machine learning will benefit their businesses and change their hiring practices, while less than one-third of workers are con-cerned about their jobs being replaced.

08 — INNOVATIONBusiness decision-makers overwhelmingly support innovative policy solutions. Across regions, industries, and company size, business decision-makers strongly support providing workers resources for upskilling and reskilling and transitioning to new careers.

09 — WORK-LIFE BALANCEPeople want more than just a paycheck from their jobs. Respondents across income, region, and role identify work-life balance as the most important feature they want from the companies they work for (40 percent of workers), above pay (33 percent of workers), benefits (28 percent of workers) and a sense of community (28 percent of workers).

10 — BENEFITS Business decision-makers and workers think the current benefit system needs to change. While satisfaction with benefits differs widely (more people like their healthcare than not; less than half are satisfied with retirement or parental benefits), the majority of business decision-makers believe the cost of benefits is hurting their growth, while half of workers say the cost of the system is preventing them from changing jobs or starting a business.

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The Future of Work and Cities

IN DEPTH: FINDINGS 01 – 03Findings 1 through 3 (outlined below) analyze the resulting scores presented in the Index

Explore the interactive City Index at futureofwork.wework.com

In Depth: Findings 01– 03

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The Future of Work and Cities

01 — COMMUNITY

People in almost every city surveyed describe their city as a thriving center of creativity and community, and a good place to raise a family.Respondents in 46 of 50 cities surveyed regard their city as home to a thriving, creative community. Additionally, 39 of 50 cities are rated highly in having a strong sense of community, and respondents in 34 of 50 cities rate their city as a good place to raise a family.

Across the Index, cities big and small have thriving communities of creatives.Respondents in almost every city (46 out of 50 surveyed) gave their city a 4 or a 5 when it comes to providing a robust creative, maker, and artistic community. Across all cities, 71 percent of all respondents agree that their city “has a thriving, creative, maker, and artistic community,” making this the best-performing dimension across city factors on the Index.

Creative communities are able to thrive in cities thanks to the density found there, which allows ideas to spread. Research from Southern Methodist University’s arts research program shows how widespread arts vibrancy is across the U.S. by mea-suring arts intensity per capita—cities like New York, San Francisco, and Los Angeles are in the top 20 for per-capita arts and cultural activity, but so are cities like Pittsburgh, Nashville, Minneapolis, and Denver.3

3 National Center for the Arts Research Arts Vibrancy Index

Artistic communities in cities have been recognized as a channel for innovation and collaboration. In 2004, the United Nations Educational, Scientific and Cultural Organization (UNESCO) founded the Creative Cities Network (UCCN) to promote cooperation across cities that have identified creativity as a strategic factor for achieving the United Nations sustainable development goals. Today more than 180 cities are members, including cities in this study, such as Sydney, Shanghai, Dublin, Mexico City, and Barcelona.

Creative activity is important in cities for many reasons: vibrant music, art, architecture, and theater communities bring cultural benefits to a city as well as innovation and economic growth. Research from the U.S. Bureau of Economic Analysis shows that arts industries provide more economic activity than their share of jobs would suggest: While arts and culture jobs account for less than 1 percent of all U.S. jobs, they are a source of more than 4 percent of U.S. GDP, and nearly 5 percent when accounting for supporting industries.4 The Federal Reserve Bank of San Francisco reports that state governors across the United States have invested in arts, culture, and design as an industry cluster as a means to enhance their local innovation systems and create career pathways for workers with similar skill sets in industries like manufacturing.5

4 U.S. Bureau of Economic Analysis

5 Federal Reserve Bank of San Francisco

01— CommunityFuture of Cities

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The Future of Work and Cities

Cities provide a sense of community, foster inclusion, and welcome diversity. Respondents in most cities (39 out of 50 surveyed) give their city a 4 or a 5 when asked to agree or disagree with the statement, “My city provides a sense of community, fosters inclusion, and welcomes diversity.” 64 percent of respondents across all cities agreed with the statement.

Cities have an important role to play as places for community, particularly during a time when feelings of loneliness and social isolation are high. According to a 2018 Pew Research Center survey, one in 10 Americans say they feel lonely or isolated from people around them all or most of the time.6 Community in cities can help reduce these feelings: People who don’t feel attached to their community are three times more likely to say they feel lonely or isolated.7

People of color are more likely to identify equity, diversity, and inclusion as important. All age groups, income levels, education levels, and racial identity groups surveyed generally agree that their city provides a sense of community, fosters inclusion, and welcomes diversity. However, when survey respondents were asked to select the three most important characteristics of their city from a list, people of color more often identified

“equity, diversity, and inclusion” as important. Forty-two percent of people of color said that they value equity, inclusion, and diversity in their city, compared with 29 percent of those who identify as white.

6 Pew Research Center

7 Pew Research Center

Research shows that equity is important for all people to consider: According to 2018 research from the Urban Institute, over the past three decades, U.S. cities that are more inclusive and equitable across different racial groups are more economically vibrant.8

Most cities are rated good places to raise families, but housing circumstance and income level impact people’s perceptions of their ability to raise a family in a city.Respondents in 34 out of 50 surveyed cities give their city a 4 or a 5 when asked to agree with the statement, “My city is a good place to raise a family and for children.” Across all surveyed cities, 64 percent of respondents agree with the statement. However, respondents with the financial stability of homeownership and higher incomes are signifi-cantly more likely to agree with the statement: 58 percent of respondents who rent their homes say their city is a good place to raise a family, versus 68 percent of those who own their homes. Similarly, 62 percent of respondents who make $50,000 or less say their city is a good place for raising a family, compared to 73 percent of respon-dents who make $200,000 or more.

Differences between higher-earning and home-owning respondents on the family dimension are reflective of the advantages afforded to those raised in wealthier neighborhoods. Economist Raj Chetty found that moving from a low-opportunity neighborhood to a high-opportunity neighborhood within a city can shape a child’s lifetime earnings, college attendance rates, and fertility and marriage patterns as an adult.9

8 The Urban Institute

9 Economist Raj Chetty

Future of Cities 01— Community

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The Future of Work and Cities Future of Cities

Economic optimism differs between high and low earners

Percentage of respondents who agree with the statement, “My city is a good place to raise a family and children”

01— Community

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The Future of Work and Cities

02 — ECONOMY

People in most cities are optimistic about their city’s economy, especially in comparison to the national economy.Respondents in 38 of 50 cities are optimistic about their city’s economy. Over the next two years, nearly two-thirds of people say they are optimistic about their local economy, compared to less than half who are optimistic about their national economy.

Economic optimism in cities is widespread. Respondents in 38 out of 50 surveyed cities give their city a 4 or a 5 when asked to agree or disagree with the statement “I am optimistic about my city’s economy in the next two years.” Moreover, nearly two-thirds of respondents across cities—64 percent of those surveyed—agree with the statement. Optimism about city economies coincides with macroeconomic trends that are benefiting cities more than other places. Cities are the site of the majority of economic activity: The World Bank estimates that cities produce 80 percent of economic activity around the world with only 50 percent of the world’s people.10 The McKinsey Global Institute (MGI) estimates that just 600 cities will produce two-thirds of the world’s GDP by 2025.11 In the U.S., MGI estimates that the largest 25 cities will produce 60 percent of jobs between now and 2030.12

10 World Bank Group, Urban Development Overview

11 Urban World: Cities and the rise of the consuming class, McKinsey Global Institute

12 McKinsey Global Institute, Future of Work in America

Respondents feel more optimistic about their city’s economy than about their nation’s economy. In every city, people report that they are more optimistic about their city economy than their nation’s economy. When asked to agree or disagree with the statement, “I am optimistic about the national economy over the next 2 years", only 48 percent of respondents across all surveyed cities agree. By contrast, 64 percent of respondents agree that they are optimistic about their city’s local economy—a difference of 16 percentage points. Increasing concentration of economic activity in cities—as described above—and city linkages to global economic conditions explains the difference in respondent opinions between national and city economic optimism.

Urban economies are also benefiting from worldwide economic growth, particularly since cities are increasingly tied to global economic trends: Research from the Brookings Institution shows that cities like Bangalore, Tel Aviv, and San Diego have over the past several decades developed clusters of specialized industries that allow them to trade internationally in high-value goods and services, further integrating these cities into the global economy.13 And the global economy has been growing. According to the International Monetary Fund, global GDP has been growing since 2016.14

13 Greg Clark, Global Cities, a Short History

14 International Monetary Fund, World Economic Outlook

Future of Cities 02 — Economy

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The Future of Work and Cities

However, it is important to note that the economic success in cities is not evenly shared across all cities. While respondents in most cities gave their city a high score for economic optimism, economic challenges are driving down expectations about the economy in others. For example, respondents in Seoul score economic optimism a "1" on the Index, evidence that the trade-dependent economy has been battered by falling export levels.15 Similarly, in Buenos Aires—where respondents also score economic optimism in the city a 1 on the Index—inflationary pressures and a weakening currency are hurting the economy.16

And just as only a few hundred cities are expected to account for the majority of jobs and GDP growth, even fewer cities may see the lion’s share of econom-ic success, particularly when considering other measures of economic activity. Research from Ian Hathaway and Richard Florida finds that only six cities—Beijing, San Francisco, San Jose, New York, Shanghai, and Boston—account for more than half of all high-tech venture capital investment from around the world.17 There’s also a risk that inequality between smaller and larger cities will continue to grow: Research from sociologist and urbanist Saskia Sassen and Temple University professor Ram Mudam-bi shows that in the globalized economy, firms and cities are more disconnected from neighboring supply chains and instead increasingly connected to other major cities. 18

15 Bloomberg News, "South Korea Economy Shrinks More Than Expected in First Quarter"

16 New York Times, "Argentina’s Economic Misery Could Bring Populism Back to the Country"

17 Center for American Entrepreneurship, Rise of the Global Startup City

18 Research from sociologist Saskia Sassen and Temple University professor Ram Mudambi

Economic optimism differs within cities.Like perceptions of family friendliness in cities, people feel differently about their city’s economy depending on their income, reflecting trends in inequality and economic disparity within cities. Across surveyed cities, 61 percent of people making less than $50,000 a year say they are optimistic about local economies, compared with 74 percent of those making at least $100,000.

Higher earners have more reason to be optimistic about their city’s economy. Historically, cities have been places of economic opportunity for people of all skills and educational levels, but recent research from MIT economist David Autor shows that people without a college degree in U.S. cities in 2015 had fewer job opportunities and received lower wages than those without a college degree in cities in 1970.19

19 David Autor, Work of the Past, Work of the Future, pp 22

Future of Cities

CITIES HAVE AN OPPORTUNITY TO STIMULATE BUSINESS AND ECONOMIC GROWTH BY MAKING  IT EASIER TO START AND RUN A BUSINESS. Respondents in 22 out of 50 surveyed cities give their city a 1 or a 2 when asked how much they agree with the statement “My city, in terms of taxes and regulations (“red tape”), is friendly to entrepreneurs and businesses, and is a good place to start or grow a company.” Across cities, slightly more than half—52 percent—of respond-ents say their city is friendly to entrepreneurs and businesses. Respondents in 9 cities gave their city a score of 4 or 5. Notably, all 3 cities where people gave their city a score of 5 are in Greater China: Shanghai, Beijing, and Hong Kong.

02 — Economy

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The Future of Work and Cities

During roughly the same time, between 1970–2012, the share of U.S. families living in middle-class neighborhoods declined from 65 to 40 percent, with more families living in either poor or affluent neighborhoods, as described by urbanist and economist Richard Florida in The New Urban Crisis. These two trends—the hollowing-out of the middle class and the changing nature of opportunity in cities—contributes to an uneven landscape of economic opportunity in cities.

Cultivating small business growth and entrepreneur-ship is critical for local and global economic health. According to the Organisation for Economic Co-oper-ation and Development (OECD), 60 to 70 percent of all jobs in OECD countries come from small businesses, with companies employing fewer than 20 people producing between 45 and 65 percent of all new jobs.20 In the U.S., new businesses have accounted for 30 percent of all new jobs created every year since 2011.21 But new business starts are slowing in the U.S. and around the world: Every year since the Great Recession, more compa-nies have closed than opened according to data analyzed by the Economic Innovation Group—the first time this has happened in U.S. history.22 Business dynamism—the rate at which new busi-nesses open—is declining in a similar way across OECD countries, according to a 2018 report from the OECD.23

20 OECD, Small Businesses, Job Creation and Growth: Facts, Obstacles, and Best Practices

21 Congressional Research Service, Small Business Administration and Job Creation

22 Economic Innovation Group, Dynamism in Retreat

23 OECD (2018), "Declining business dynamism across 20 OECD and non-OECD economies", in Analysis Underpinning the Framework for Policy Action on Inclusive Growth, OECD Publishing, Paris,

Many factors contribute to slowing business dyna-mism, including the fact that large companies have a higher market share than in the past, and that knowledge transfers between companies are at an all-time low, according to research from econo-mists at the University of Chicago.24 That said, regulations and taxes can prevent people from starting businesses. In an annual survey of small business owners from small business matching platform Thumbtack, 42 percent of small business owners surveyed said that governments could improve business taxes by making them easier to understand and file, and 58 percent said they would prefer that governments reduce small businesses’ tax burden.

Cities and mayors have an opportunity to ease the regulatory burden for new companies. In 2015, the Obama administration in coordination with the National League of Cities introduced the

“Startup in a Day Initiative,” which encouraged mayors to develop online tools to allow entrepreneurs to navigate the local, state, and federal requirements for starting a business.25 In Boston, a new online permitting portal shortened permit review and issuance times for businesses by 75 percent.26

24 UChicago, What Happened to U.S. Business Dynamism?

25 White House Archives

26 National League of Cities

Future of Cities 02 — Economy

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The Future of Work and Cities

WeWork members rate innovation ecosystems in their cities higher than non-WeWork members.When comparing WeWork member responses with those of the general workforce, WeWork members feel the same way about many dimensions of city life. However, when it comes to scoring their innovation ecosystem, WeWork members score their cities higher.

Future of Cities

Of the 41 cities where both WeWork members and the general workforce were surveyed, WeWork members score their city's innovation factor at least one score higher in 26 cities.

In the remaining

15 cities, WeWork

members and the

general workforce

give their city's

innovation ecosystem

the same score.

02 — Economy

20

The Future of Work and Cities

When asked to agree with the statement “My city has a thriving innovation ecosystem (for example: clusters of innovators, startups, and bigger compa-nies networking and collaborating)” people in half of the surveyed cities (25 out of 50 surveyed) gave their city a score of 4 or a 5. There are 41 cities included where both WeWork members and the general population were surveyed; in 26 out of those 41 cities with both WeWork members and general workforce respondents, WeWork members score their city's innovation factor at least one score higher. In the remaining 15 cities, WeWork members and the general workforce give their city’s innovation ecosystem the same score.

These differences in opinion might reflect trends in how networks and proximity in cities can drive innovation. Researchers at the Brookings Institution have identified a growing trend of dense enclaves of large companies, high-growth firms, creative startups, and research-oriented institutions (like universities) in cities that they term “innovation districts.”27 The Economist Intelligence Unit describes the idea behind this strategy: Proximity between people and businesses can help develop networks of problem-solvers working on shared challenges or giving each other ideas, leading to innovation which can drive economic growth.28

27 The Brookings Institution, Innovation Districts

28 The Economist Intelligence Unit, Spatial alchemy: Why proximity matters for innovation

Beyond innovative problem-solving and idea-sharing, networks of people and companies can cultivate innovation ecosystems through intentional connec-tions. Research from Kauffman Foundation fellows Maryann Feldman and Ted Zoller finds that the presence of “dealmakers”—people with high social capital that build local entrepreneurial systems— is associated with greater regional startup activity and is a stronger predictor of startup activity than the number of inventors or entrepreneurs in a city.29

Based on the WeWork Global Impact Report, 1 in 8 first time entrepreneurs in major cities in the U.S. are WeWork members, and more than 76 percent of WeWork members are in the innovation economy, which are high-growth industries typically in the tech, professional services, advanced manufacturing, and creative sectors.30 We don’t know exactly what drives WeWork members to score their cities’ innovation ecosystems higher than those in the general workforce, but these two trends—dense innovation networks forming and driving interactions in cities paired with the impact of network-builders—suggests that the close proximity of WeWork members in WeWork spaces in buildings across cities may be a factor.

29 Feldman, Maryann P. and Zoller, Ted, Dealmakers in Place: Social Capital Connections in Regional Entrepreneurial Economies (March 1, 2012)

30 WeWork Global Impact Report

Future of Cities 02 — Economy

21

The Future of Work and Cities

People who give their city a 6 or less on the NPS

35%

36%

38%

36%

29%

36%

49%

32%

21%

People are more likely to recommend their city if they feel it is a good place to raise a family and if they are optimistic about their city’s economy.As part of the Index, we asked people to reply on a scale from 1 to 10 to the question “How likely are you to recommend your city to a friend or professional acquaintance as a place to live?” Companies often use a version of this question—called the net promoter score or NPS —to understand how strongly their customers feel about their products or services. By asking this question about cities, we are able to better understand how people feel about where they live.

As is often done in companies when studying the NPS score, it unlocks the relationship between sentiment about their city (the NPS) and the way their city performs on the key factors of the Index.

Future of Cities

Family

Economy

Community

Innovation

Business Friendliness

Walkability

Creative

Infrastructure

Housing

People who give their city a 9–10 on the NPS

82%

82%

82%

76%

68%

74%

86%

65%

52%

People who give their city a 7–8 on the NPS

65%

65%

64%

59%

52%

59%

71%

51%

37%

Share of people who agree with each key factor on the Index by NPS score

The people who give their city the highest scores on the NPS—a 9 or a 10—are much more likely to say that their city is a good place to raise a family and has a good economy compared with those who give their city a score of 6 or less on the NPS. 82 percent of people who give their city a 9 or higher on the NPS score say their city is a good place to raise a family, compared with only 35 percent of those who give their city a 6 or lower; similarly, 82 percent of high-scorers say they are optimistic about the economy, relative to just 36 percent of low-scorers. These differences suggest that the most important determinants of a person’s likelihood of recommend-ing their city is how they feel about the economy and the city’s suitability for raising a family.

02 — Economy

22

The Future of Work and Cities

We tested this further by running a regression analysis on the NPS score and key factors data. All else being equal, people are more likely to recommend their city if they feel optimistic about their city’s economy and if they feel like it is a good place for children and for raising a family. On average across all respondents, an increase in agreement on the family factor will lead to a 0.4 increase in the NPS score. Similarly, an increase in agreement on the economy factor will lead to a 0.3 increase in the NPS score, further indicating that the economy and ability to raise a family are the two biggest determinants of whether people are willing to recommend their city to others.

Future of Cities

Coefficient Estimate

1.06**

0.42**

0.32**

0.28**

0.25**

0.15**

0.13**

0.11**

0.06**

0.03**

Variable

(Intercept)

Family

Economy

Creative

Community

Walkability

Business Friendliness

Innovation

Infrastructure

Housing

Regression Coefficient Estimates

02 — Economy

23

The Future of Work and Cities

03 — HOUSING

Nearly every city is facing a housing crisis. Affordability and quality of housing is by far the top-ranked challenge cited by respondents, followed by homelessness. While people in less than half of surveyed cities (24 of 50) give their city a high score on its walkability, there are no places where people score their city high on both housing and walkability.

Cities are falling short on providing quality and affordable housing.People in nearly every city (45 out of 50 surveyed) give their city a 1 or a 2 on its ability to provide quality and affordable housing. In fact, people in almost every city score housing the lowest of all the factors included in the Index, including places large and small, in the U.S. and outside. Pittsburgh, Kansas City, and St. Louis were the only three cities to give their city a high score on the quality and affordability of housing (4 or above).

Moreover, only 39 percent of all people surveyed say that their city provides quality and affordable housing. While housing is a complex issue with challenges specific to every city, there is one consis-tent problem: Global housing supplies are limited. Research from the McKinsey Global Institute indicates that 330 million households globally occupy unsafe and inadequate housing or are financially stretched by housing costs.31 That number is projected to climb to 440 million households—or one in three urban dwellers—by 2025.

31 McKinsey Global Institute

Housing shortages drive up housing costs and can mists Enrico Moretti and Chang-Tai Hsieh at UC Berkeley and the University of Chicago finds that real GDP in the U.S. could be 9 percent higher if there were new housing construction in just three markets: New York, San Francisco, and San Jose.32 Housing restrictions in high-productivity cities have actually capped the number of workers able to access jobs in that city. Additionally, economists Ed Glaeser and Joseph Gyourko find that regulations on housing construction in the U.S. distort housing markets, prevent economic mobility, and that regulations and restrictions on housing, zoning, and construction far outweigh the economic benefits.33

However, some cities are developing localized solutions to tackle the housing supply shortage. According to the Brookings Institution, the Washing-ton, D.C. suburb of Arlington, Virginia, New York City, and the state of California have all enacted policies that streamline approval for transit-oriented housing development projects. Similarly, Portland, Oregon, Vancouver, and Washington, D.C. have all reduced barriers to accessory dwelling units (or ADUs, sometimes referred to as “in-law” units) in order to expand housing and increase density incrementally. And in a January 2020 “State of the City” address, Mayor Marty Walsh of Boston announced a $500 million plan to create new affordable housing over the next five years in the city.34

32 Enrico Moretti and Chang-Tai Hsieh

33 Ed Glaeser and Joseph Gyourko

34 https://www.wbur.org/news/2020/01/08/mayor- marty-walsh-state-of-the-city-affordable- housing-education-transportation

Future of Cities 03 — Housing

24

The Future of Work and Cities

Nearly every city is facing a housing crisis

Housing options are by far the top-ranked challenge identified by residents in most cities. 43% of people identify a lack of quality and affordable housing as a top challenge, and 37% of people identify home- lessness as a top challenge.

Explore the interactive graph here

Housing shortages are one part of a larger story, though. A recently released report from the National League of Cities identifies low housing supply across the U.S. as part of the problem, but cites slow wage growth, lack of transit options, and access to credit as contributing to and exacerbating the challenges of increasingly unaffordable housing.35

Homelessness is tied to lack of quality and affordable housing. When we asked people about the top three challeng-es in their cities, 43 percent of people identify a lack of quality and affordable housing, and 36 percent of people identify homelessness. Additionally, people in cities that identified a lack of quality and afford-able housing as the top challenge score homelessness the second-highest, showing the relationship be-tween housing and homelessness. Cities grappling with both a lack of quality and affordable housing, and homelessness are almost exclusively located in the U.S.

35 NLC

Future of Cities

Greatest Challenges

03 — Housing

25

The Future of Work and Cities

While quality and affordable housing scores poorly across the board, there are no places where people score their city high on both housing and walkability. This suggests that the benefits of walkability in cities are only reserved for those that can afford housing in walkable places. The CEOs for Cities’ study on walkability indicates that walkability of a neighborhood correlates directly to its housing prices, with higher prices for houses in walkable areas. This tension can create an accessibility gap for those who are priced out of walkable neigh-borhoods.40

40 “The socioecological psychology of upward social mobility.” American Psychologist, 2019.

According to the U.S. Department of Housing and Urban Development, homelessness is on the rise in the U.S. for the first time in more than a decade.36 Cities like Los Angeles and San Francisco have seen a precipitous increase over the past several years based on their own reporting.37 While people experience homelessness for a multitude of reasons, research from the University of New Hampshire finds that rising rents and housing cost burdens increase rates of homelessness.38

People in less than half of cities think their city is walkable.People in less than half of cities (24 out of 50 sur-veyed) give their city a 4 or a 5 on its walkability and quality of its built environment. As might be expected, people in places in the U.S. known for sprawl, like Atlanta, Phoenix, Houston, Dallas, Las Vegas, and St. Louis score their cities a 1 on the Index for walkability. Outside the U.S., Bogota scored a 1, alongside Hong Kong, Mexico City, São Paulo, and Bangalore, which scored a 2. According to a study on walkability from CEOs for Cities, walkable urban areas are associated with increased health, fitness, and access to amenities.39 In a study in the journal American Psychologist, authors Shigehiro, Minkyung, and Buttrick find that people in walkable cities are less reliant on cars for employment, feel a greater sense of belonging in their communities, and that children growing up in walkable areas have higher levels of upward economic mobility, controlling for all other demographic and neighborhood characteristics.

36 U.S. Agency on Housing and Urban Development

37 Los Angeles and San Francisco homelessness reports

38 University of New Hampshire

39 CEOs for Cities

CITIES IN LATIN AMERICA AND THE U.S. STRUGGLE  TO PROVIDE QUALITY INFRASTRUCTURE. People in about half of cities (24 out of 50 surveyed) give their city a 1 or a 2 on its ability to provide quality public infrastructure, making infrastructure the second lowest- ranked dimension of the City Index. Almost all of the low-scoring cities (23 out of 24 surveyed) are in the U.S. and Latin America, with people in 19 out of 30 U.S. cities scoring their city’s infrastructure a 1 or a 2.

Future of Cities 03 — Housing

26

The Future of Work and Cities

Globally, many countries are underinvesting in infrastructure. According to a 2016 McKinsey Global Institute report, since the global financial crisis, infrastructure investment has declined as a share of GDP in 11 of the G20 countries, leaving a $350 billion annual gap in infrastructure spending globally.41 And that number is not accounting for the steep investment needed to meet the United Nations sustainable development goals, of which infrastruc-ture is a key component. Moreover, cities in the U.S. and Latin America expressing a lack of satisfaction with infrastructure in the survey have reason to be dissatisfied: Research from Oxford Economics shows that cities in the U.S. and Latin America have lower levels of per-capita spending on infrastructure than cities in Asia and Europe.42

A recent Center for Budget and Policy Priorities report outlines why investment in infrastructure is crucial to a well-functioning economy: Infrastruc-ture creates physical access to jobs for people and smooth operations for commerce.43 Infrastruc-ture challenges can lead to, among other things, long commute times, which affects people’s physical and mental health. A study from the University of Cambridge and others finds that people in the United Kingdom with longer commutes are 33 percent more likely to suffer from depression, 46 percent less likely to get the recommended amount of sleep, and 21 percent more likely to be obese.44

41 McKinsey Global Institute

42 Oxford Economics

43 Center for Budget and Policy Priorities

44 University of Cambridge

And commute times are on the rise. The U.S. Census Bureau found that the average commute time for Americans increased to 26.9 minutes in recent years, with San Francisco, San Bernardino, California, and Atlanta topping the list at 35-minute, 33-minute, and 32-minute one-way commute times, respectively.45

Cities are making efforts to improve infrastructure investment. For example, in 2016, Los Angeles voters approved a sales tax increase focused on funding transit.46 The funds from Measure M will fuel rapid expansion of bus rapid transit and subway lines, projects that are projected to ease traffic burdens, improve commute times, and reduce greenhouse gas emissions from less efficient modes of transit. As people move to cities, they put increasing pressure on housing and transportation systems, and as housing in the center of cities becomes more expen-sive, people face longer commutes and increase their carbon footprint. As a result, infrastructure and the built environment are two of the most powerful tools that cities have to address climate change.

45 ACS

46 Eno Center for Transportation, Spotlight on Measure M

Future of Cities 03 — Housing

27

The Future of Work and Cities

04 — MOVINGCities are at risk of losing current residents and talent. Over a third of people in many cities surveyed are considering moving in the next two years.

Across cities, more than one-third of people— 35 percent—responded “yes” when asked:

“Have you considered or are you considering moving from your current city in the next two years?” As policymakers, advocacy groups, and businesses develop solutions to address housing shortages and infrastructure challenges in cities, they will have to contend with a restless population. In some cities, like the Bay Area, Washington, D.C., and São Paulo, more than 48 percent of people say they are considering moving.

04 — MovingFuture of Cities

Share that say they are considering moving in the next two years

49%

48%

48%

47%

46%

46%

45%

45%

45%

43%

City

Bay Area

Washington, D.C.

São Paulo

Chicago

St. Louis

Seattle

Miami

Bogota

Bangalore

New York

Cities with the highest share of people who say they are considering moving in the next two years

28

The Future of Work and Cities

The survey results speak to an already existing trend: In some cities in the U.S., more people are already moving out than moving in. Population growth in the largest cities in the U.S. slowed in 2017–2018 to 0.7 percent, down from a post-recession peak of 1.2 percent between 2011–2012, according to Brookings Institution demographer William Frey.47 Frey’s analysis of U.S. Census data shows 20 large U.S. cities lost people between 2017–2018, including New York City, Chicago, San Jose, Detroit, and Pittsburgh, all cities surveyed as part of this work.

It’s not clear from the survey results alone why people are considering moving—some may be pursuing economic opportunity, while others may be considering leaving because of high housing costs or long commutes. What the survey responses do show is that the desire to move is related to income: 44 percent of people who make less than $50,000 say they are considering moving in the next two years, more than ten points higher than the share of people (31 percent) who are considering moving and make over $100,000.

Satisfaction with one’s city, as measured by the NPS score, is also related to a person’s moving consider-ation. 40 percent of people who rate their city a 6 or lower on the city NPS question say they are considering moving, versus 26 percent of people who rate their city a 7 or higher. Finally, the survey also finds that younger workers are more likely to be mobile. 52 percent of people 24 years or younger say they are considering moving from their current city, compared to 41 percent of people aged 25 to 44, and 29 percent of people between the ages of 45 and 65 who say they may move in the next two years.

47 Brookings, Big city growth stalls further, as the suburbs make a comeback

05 – CLIMATE CHANGE 

People in every city agree their city should develop an aggressive climate action plan. The majority of respondents in 49 out of 50 cities surveyed—and 70 percent of respondents overall—agree that their city should develop a plan and strategy to use 100% clean energy and be carbon neutral by 2030.

Cities produce the majority of carbon emissions, and they have a mandate to act on climate change.The majority of respondents in 49 out of 50 cities surveyed—and 70 percent of respondents overall—agree with the statement: “I believe my city should develop a plan and strategy to use 100 percent clean energy and be carbon neutral by 2030.” City-led action on climate change can have a major impact since cities produce the majority of the world’s carbon emissions. Research from the World Bank shows that people living in cities are responsible for 80 percent of global greenhouse gas emissions.48 Generally, the built environment (construction, building heating and cooling, etc.) and transportation are the largest sources, contributing as much as 70 percent of a city’s carbon emissions.49 Fueling the need to transform the built environment’s carbon impact are housing trends (discussed in Finding 3). As the high cost of housing pushes more workers into longer commutes, the built environment will grow alongside it, increasing carbon emissions and exacerbating the effects of climate change.

48 The World Bank

49 The World Bank

Future of Cities 05 — Climate Change

29

The Future of Work and Cities

Cities are addressing climate change by putting forth aggressive solutions for carbon-neutrality. Without serious commitment to climate change policies, by 2050, 800 million people in 570 cities will be vulnerable to sea level rise and coastal flood-ing, and 1.6 billion people in 970 cities will regularly experience extreme high temperatures, according to a 2018 report from the C40, Global Covenant of Mayors, and other climate change groups.50 Cities will be disproportionately affected by climate change, and because of that, mayors around the world are already leading on climate solutions.

50 C40, Global Covenant of Mayors and Others

In the U.S., more than 400 mayors signed a statement agreeing to continue actions to ensure their cities reach the carbon emissions and temperature targets set by the Paris Climate Agreement after the U.S. federal government announced in 2017 that it would withdraw from the agreement. 51 In August 2018, the C40 announced that leaders from 19 cities—representing 130 million people—signed an agreement to make all buildings in their cities carbon neutral by 2050.52 Cities that signed the agreement, and are included in the survey, are listed below in City Signees to the C40 Agreement on Building Carbon Neutrality.

51 Climate Mayors

52 C40

Future of Cities

Share of People Who Say they Support Plans for Car-bon- Neutral Cities and 100% Clean Energy by 2030

74%

76%

74%

75%

67%

66%

65%

69%

City

New York

Paris

Portland

San Francisco

Sydney

Toronto

Vancouver

Washington, D.C.

City Signees to the C40 Agreement on Building Carbon Neutrality 

05 — Climate Change

30

The Future of Work and Cities

06 – TALENT 

Businesses face fierce competition for talent. One-third of business decision-makers report having a hard time finding talent in their cities, while nearly 4 in 10 business decision-makers say it is difficult attracting and retaining talent.

Businesses face challenges in attracting and retaining talent generally, and technical talent specifically. When asked about their experience identifying the necessary skills and experience among potential candidates, a third of business decision-makers (32 percent) said they are having a hard time finding talent in their city. Furthermore, even when there is a match between talent and role, nearly 4 in 10 (38 percent) business decision-makers say they are having a hard time attracting and retaining talent. Finding and keeping talented people isn’t a passing challenge for businesses, it’s key to a business’s success. According to McKinsey, high-performing workers are about 800 percent more productive than average workers in high complexity jobs.53 Given the potential impact of high-performers, it’s no surprise that in its most recent annual survey of CEOs, the Conference Board notes that finding and attracting talent is the top concern for company leaders for the third year in a row.54

Overall, across cities, more than a quarter—26 percent—of business decision-makers said they are planning to hire the most for technical roles (such as web development, data science, software development) in the next five years, and the same number—26 percent—said that those roles are the hardest to hire for.

53 McKinsey & Company, Attracting and retaining the right talent

54 The Conference Board, In 2019, CEOs Are Most Concerned About Talent and a Recession

The demand for technical talent is a reflection of how jobs have become more digitally intensive, as they require more technical skills. Research from Mark Muro at the Brookings Institution finds that between 2002 and 2016, the number of jobs requiring high levels of digital skills in the U.S. rose from 5 percent of all jobs to 23 percent.55

Different cities have different talent challenges and demands. Every city has a unique labor market, comprised of a distinct mix of industries, companies, and people in the workforce, making talent attraction and retention a different story from place to place. In cities like Bangalore and Singapore, more business-es report challenges finding and keeping the right employees. There, 56 percent and 44 percent of business decision-makers, respectively, say they have a hard time finding talent. Keeping employees is also difficult in those places: Bangalore and Singapore top the list of cities with 65 percent and 56 percent of businesses reporting difficulty attracting and retaining talent, respectively.

Other places report fewer challenges: In Shanghai, less than a fifth of business decision-makers say they are having a hard time finding talent (17 percent) and attracting and retaining talent (18 percent). The story is similar in Seoul, where just over a fifth say they have a hard time attracting and retaining talent (23 percent) and finding it (21 percent).

Business decision-makers’ need for technical talent will only continue to increase as automation technologies are adopted. But generally, business decision-makers welcome the coming changes from automation, noting it will benefit their business.

55 Brookings, Digitalization and the American workforce

Future of Work 06 — Talent

31

The Future of Work and Cities

07 – AUTOMATION 

Most businesses are planning for automation, but most workers are not. At least half of business decision-makers say automation, AI, and machine learning will benefit their businesses and change their hiring practices, while less than one-third of workers are concerned about their jobs being replaced.

Half of business decision-makers say automation, AI, and machine learning will benefit their businesses.When asked, half of all business decision-makers (50 percent) say that their businesses stand to gain from changes in technology, automation, AI, and machine learning (see Percentage of Decision Makers in Select Industries Who Say Automation, AI, and Machine Learning Will Benefit Their Businesses for industry breakdown). It seems automation can be good news for businesses, and also for global economic growth: McKinsey Global Institute estimates that automation is poised to increase global productivity by 0.8 to 1.4 percent annually. For the global economy to achieve those gains, companies will have to adopt automation technolo-gies widely. Historically, bigger firms are better able to deploy new technologies and have more resources and scale to make needed changes to adopt new technologies effectively.56 Survey respon-dents confirm this dynamic: Business decision-makers at larger businesses are more likely to say their businesses will gain from technology. 60 percent of business decision-makers at firms with more than 250 people say that coming technological changes will improve their business, compared with 36 per-cent at companies with fewer than 250 employees.

56 Berkeley, New Economy Handbook: Hall and Khan, pp. 21

While businesses stand to gain from automation, automation is poised to impact millions of jobs.More than half (52 percent) of business decision-makers say that changes from automation, AI, and machine learning will change the way they hire workers in the next five years, but only about one-third (32 percent) of workers believe their jobs will be replaced by automation.

This discrepancy between worker and firm expecta-tions of automation is striking given current projec-tions on how jobs will be replaced or augmented by technology. An in-depth analysis from McKinsey breaks down the kinds of tasks that people perform during their workday to assess the impact of automa-tion and AI on specific occupations. The study finds that 45 percent of work tasks could be replaced by existing technology, though only about 5 percent of existing occupations could be fully replaced. For more than 60 percent of occupations, however, 30 percent of work activities can be replaced by existing technology.57 In total, McKinsey estimates that disruption from automation to workers could replace $16 trillion of wages and impact up to 800 million jobs worldwide.58

57 McKinsey & Co, Four fundamentals of workplace automation

58 McKinsey Global Institute, Jobs lost, jobs gained:What the future of work will mean for jobs, skills, and wages

Future of Work 07 — Automation

32

The Future of Work and Cities

In some industries, nearly two-thirds of business decision-makers say they will change hiring practices, while fewer than one-third of workers say they are concerned about their jobs being replaced. In agricultural industries (which also includes forestry, fishing, and hunting), 73 percent of business deci-sion-makers say that automation will change their hiring practices, but only 28 percent of workers are concerned about their jobs being replaced. Similarly, in information industries (which includes sub-industries like newspaper publishing and soft-ware development), 65 percent of business deci-sion-makers say that automation will change their hiring practices, while only 41 percent of workers say they are concerned. In manufacturing, 60 percent of business decision-makers say that automation will change their hiring practices, but only 33 percent of workers say they are concerned.

Technological impacts on people’s jobs may break along regional and demographic lines.Just as people working in different industries have different expectations about the likelihood of technology replacing their jobs, people in different countries have different expectations. In the U.S., only 28 percent of people say they are concerned about their jobs being replaced. For people in cities in Europe and Latin America, the share of people concerned increases to 33 percent in each region. For the cities in Asia, 41 percent of people expressed concern, but the share of people who expressed concern was much higher in Seoul (where 45 percent of people say they are concerned), Singapore (56 percent of people say they are con-cerned), and Bangalore (where 71 percent of people say they are concerned).

In the U.S., where the survey asks respondents about their racial identity, 36 percent of people of color say they are concerned about their jobs being replaced compared with 22 percent of people who identify as white. Black and Latinx workers are overrepresent-ed in jobs that are more likely to face changes from automation; according to Brookings, 45 and 47 percent of tasks that black and Latinx workers currently perform at their jobs (respectively) can be automated today, on average, compared with 40 percent of tasks for their white counterparts.59 This may contribute to differing sentiments about technology’s role and impact. According to the Joint Center’s 2018 future of work survey, African American and Latino workers are significantly less likely than white and Asian American workers to see technology as creating greater workplace efficiencies. 60

Similarly, younger workers are more concerned that their jobs could be replaced by automation than their older counterparts: 44 percent of people under 24 years old say they are concerned, compared with 36 percent of people ages 25–44, 27 percent between 44–65, and only 18 percent over 65. Brookings also reports that workers under 24 face a high average exposure to automation: 49 percent of tasks current-ly performed by the average U.S. worker under 24 can be replaced by current technology.61

59 The Brookings Institution, Automation and Artificial Intelligence: How Machines Are Affecting People and Places

60 Joint Center for Political and Economic Studies, Racial Differences on the Future of Work: A Survey of the American Workforce”

61 The Brookings Institution, Automation and Artificial Intelligence: How Machines Are Affecting People and Places

Future of Work 07 — Automation

33

The Future of Work and Cities

As many tasks and jobs are replaced by machines, millions more are also likely to be created, and companies will need skilled people to fill those roles. As previously mentioned, companies are having a hard time finding talent in the current environment. In this context, a critical way policymakers and employers can help workers is by helping them get the skills and experience they need to compete for skilled jobs, and helping companies find and recruit those workers.

Industry Breakdown

Information

Management

Manufacturing

Mining

Administration

Utilities

Financial & Insurance

Wholesale Trade

Professional, Scientific, Tech

Transportation & Warehousing

Construction

Retail Trade

Healthcare

Real Estate

Accomodation & Food

Educational Services

Other Services

Arts & Entertainment

Percentage

71%

65%

63%

61%

59%

59%

57%

56%

52%

52%

50%

47%

44%

43%

43%

41%

36%

33%

07 — Automation

Percentage of decision makers in select industries who say auto- mation, AI, and machine learning will benefit their businesses.

34

The Future of Work and Cities

08 – INNOVATION

Business decision-makers overwhelmingly support innovative policy solutions. Across regions, industries, and company size in the U.S., business decision-makers strongly support providing workers resources for upskilling and reskilling and transitioning to new careers.

Business decision-makers say they would hire graduates from bootcamps or other non-traditional educational backgrounds. Tech, coding, or business bootcamps can provide a pathway for rapid upskilling and reskilling for workers. 87 percent of business decision-makers surveyed agree they would be willing to hire someone who does not have a college degree, but has the right skills, training, or experience for the job devel-oped at a coding, design, or business bootcamp. That number is consistent across industries and firm size, signaling widespread support among busi-ness decision-makers.

Early signs show that bootcamps could be a viable solution for connecting companies in need of talent to workers, especially those from underrepresented communities. Researchers at Indeed.com conducted a survey of 1,000 technical recruiters and hiring managers and found that more than two-thirds (72 percent) say that bootcamp grads are competitive with traditional degree holders, suggesting that perceptions of non-traditional forms of education among employers may be shifting.62

62 Indeed.com

Future of Work

And job placement rates indicate just how far those perceptions might have shifted: Independently verified assessments of bootcamp coding academies such as the Flatiron School and General Assembly boast job-placement rates of graduates upward of 90 percent, while Lambda School has an 86 percent placement rate.63

Additionally, coding and tech bootcamps can act as a force for inclusion in industries that often lack diversity. In the Harvard Business Review, Brookings scholars Mark Muro and Andrew Perry have written about the success of the code academy LaunchCode in St. Louis in reskilling and job placements for people of color and people who were previously unemployed.64

Business decision-makers say that they would consid-er contributing to skills training savings accounts. Skills training savings accounts can help workers access training opportunities as they continue in their career. When asked, “Would you consider contributing to a career and skills training savings account for your employees if the government provided you 25 percent tax credits for your contri-butions?,” 77 percent of business decision-makers agree that they would. In the U.S., Senators Mark Warner and Chris Coons introduced similar legislation to advance skills-based training accounts in the 119th U.S. Congress. These types of programs have proven to be successful in other countries for worker retraining and reskilling .

63 The Flatiron School (examined by Moody, Farmigletti & Andronico, LLP), General Assembly (examined by KPMG LLP), and Lambda School

64 Harvard Business Review

08 — Innovation

35

The Future of Work and Cities

In Germany, where apprenticeship programs are common, particularly among manufacturing firms and young workers, workforce research shows that 87 percent of apprenticeship sponsors say that taking on apprentices has helped them meet skills demands and improve innovation.

While business decision-makers contemplate the different ways they can find and retain talent, they must also consider the shifting relationship between workers and their employers—the future of work will be equally shaped by the ways comp-anies evolve in response to what workers value most from their employers.

For example, France and Singapore have established national programs to fund training. In Singapore, 400,000 people utilized their “individual learning accounts” in 2018,65 and Singaporean business decision-makers were more likely (82 percent) to support skills training savings accounts than their global counterparts.

Business decision-makers say they would consider hiring apprentices.Apprenticeships provide people an opportunity to build skills through work experience while earning a paycheck. 79 percent of business decision-makers surveyed agree they would consider taking on apprentices or participating in a work-based training program that would lead to a job interview for a full-time role. Business decision-makers were asked,

“Would you consider taking on apprentices (such as a three-to-six-month paid apprenticeship or work-based training program where the costs are poten-tially shared between you and the government or another partner such as a school or training provider or you are provided a tax incentive) that would lead to a job interview for a full-time role?” Already, apprenticeship programs in the U.S. have seen signs of success: Apprenticeship South Carolina has produced nearly 30,000 apprentices across a range of industries between 2009 and 2018.66 Today, there are more than 500,000 apprentices in the United States. While this number has grown over the past few years, at 0.3 percent of the U.S. labor force, apprenticeships still represent a small fraction of the workforce when compared with other countries.

65 SkillsFuture Singapore. 2019. “SkillsFuture: 2018 Year in Review.”

66 Aspen Institute Future of Work Initiative

Future of Work

PEOPLE OF COLOR MORE OFTEN SAY THAT EQUITY, INCLUSION, AND DIVERSITY IS A TOP PRIORITY FROM THEIR COMPANY.Respondents were asked to identify the three most valued characteristics from the company they work for. On the whole, 16 percent of respondents named “equity, inclusion, and diversity” as a top-three characteristic, coming in 10th out of the full list of 13 categories. However, in the U.S., where we asked people about their racial identity, 22 percent of respon-dents who identify as Black say that equity, diversity, and inclusion in the workplace is important, as well as 19 percent of people who identify as Hispanic, and 19 percent of people who identify as Asian. That’s compared to only 12 percent of those who identify as white. As the U.S. workforce continues to diversify, these values are likely to increase in importance.

08 — Innovation

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The Future of Work and Cities

09 – WORK-LIFE BALANCE 

People want more than just a paycheck from their jobs. Respondents across income, region, and role identify work-life balance as the most important feature they want from the companies they work for (40 percent of workers), above pay (33 percent of workers), benefits (28 percent of workers) and a sense of community (28 percent of workers).

People want work-life balance. When asked, “What do you value most in the compa-ny you work for?,” 40 percent of workers identify work-life balance, along with pay (33 percent), the people they work with and sense of community (28 percent), benefits (28 percent), and how they feel when at work (21 percent). These characteristics were cited more often than opportunity for advance-ment, business outlook, and quality of leadership. Across income, region, and role within the company, respondents most often identify work-life balance as a top priority. Research featured in the Harvard Business Review might suggest why: Shawn Achor and Michelle Gielan find that people in the U.S. are working longer hours and taking fewer vacation days, but statistically workers are happier, less stressed, and more successful at work when they take more vacation.67

67 HBR

Future of Work

Respondents value the people they work with and the sense of community at work. Twenty-eight percent of workers identify the people they work with and the sense of community as the most important characteristic from work. This proves to be slightly more important for older workers—30 percent of workers over 45 years old identified community as an important characteristic, compared with 26 percent of those workers under 45—and equally important across company size, region, and industry.

Employee connection and community at work can be critical for business performance. Companies can better retain workers by improving company culture:According to Gallup’s State of the American Work-place report, only a third of U.S. workers are engaged at their jobs, and 17 percent are actively disengaged. Aside from pay, career opportunities, and job fit, workers who leave their companies voluntarily identify “company culture” as a top reason for leaving. In a study published by Wharton Business School, Hakan Ozcelik and Sigal Barsade find that greater employee loneliness leads to poorer tasks, role, and relational performance.68

68 Sigal Barsade at Wharton Business School

09 — Work-Life Balance

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The Future of Work and Cities

10 – BENEFITS 

Business decision-makers and workers think the current benefit system needs to change. While satisfaction with benefits differs widely (more people like their healthcare than not; less than half are satisfied with retirement or parental benefits), the majority of business decision-makers believe the cost of benefits is hurting their growth, while half of workers say the cost of the system is preventing them from changing jobs or starting a business.

Respondents indicate that benefits are costly and can limit business growth, entrepreneurship, and job changes. Workplace benefits are a key pillar of the employ-ee-employer relationship: 28 percent of respondents include benefits in the characteristics they value most in their employer. But workers say traditional benefits models have gaps.

For both businesses and individuals, providing and accessing benefits can be a barrier to business growth, entrepreneurship, and job changes. In the U.S. and globally, 53 percent of business decision-makers agree that the costs of providing benefits affect their ability to grow their business or hire and retain talent. In the U.S., for health care benefits in 2018, companies paid an average of $5,700 per employee for single-coverage plans and $14,000 for family-coverage plans, based on a survey and analysis by the Kaiser Family Foundation.69 According to the U.S. Bureau of Labor Statistics, benefits spending accounts for 30 percent of employer costs for total compensation, with the remaining 70 percent coming from salary and wages.70

69 Kaiser Family Foundation, 2018 Employer Health Benefits Survey

70 Bureau of Labor Statistics, Employer Costs for Employee Compensation

Future of Work

In addition to serving as a constraint for businesses, many people experience job lock—the inability or unwillingness to switch jobs or start businesses—due to the risk of losing essential benefits. Fully half—50 percent—of respondents said that the cost of access to benefits (parental, retirement, or health) would prevent them from changing jobs or starting a new business. In the U.S., the average person who receives health insurance through their employer contributes between 18 and 29 percent of the total cost of their premiums, with employers paying for the rest, according to a Kaiser Family Foundation study.71 For a person choosing to leave their job to start a new business, they have to consid-er the additional costs of paying for benefits. These considerations constrain new businesses’ formation and, according to research from the Kauffman-RAND Institute for Public Policy, can lead to an inefficient level of business creation.72 Researchers at the U.S. Treasury Department found that single women without access to healthcare benefits were 10 percent less likely to be self-employed than their counterparts with access to healthcare benefits.73

People’s satisfaction with their benefits differs widely. Respondents in the survey represent viewpoints from 18 different countries, with at least as many national laws and frameworks that govern the ways in which companies provide and people access benefits. Analyzing the ways in which people experience their benefits across different systems is important and warrants continued analysis beyond the scope of this paper.

71 Kaiser Family Foundation, 2018 Employer Health Benefits Survey

72 Rand Corporation, "Is Employer-Based Health Insurance a Barrier to Entrepreneurship?"

73 Journal of Public Economics, "The effect of self-employed health insurance subsidies on self-employment"

10 — Benefits

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The Future of Work and Cities

That said, a few things are clear from the data in this survey: Globally, respondents who receive healthcare benefits from employers are more likely to say they are satisfied than respondents who receive benefits from the government; respondents with higher incomes are more satisfied with their benefits; and overall, respondents are least satisfied with their parental benefits. Finally, women are much less likely to say they are satisfied with their benefits than men.

A majority of respondents say they are satisfied with their healthcare benefits.Across cities, most respondents (62 percent) said they are satisfied with their healthcare benefits: In the U.S., 62 percent of people say they are satisfied with their healthcare benefits, compared with 55 percent of people surveyed in the U.K., 60 percent in Canada, 69 percent in Spain, and 74 percent in France. In Asia, Shanghai tops the list with 87 percent of people saying they are satisfied with their health benefits, and Hong Kong reports the lowest level of satisfaction at 39 percent. A full table of reported satisfaction across benefit type and country is available in the Appendix.

People at larger companies say they are more satisfied with their health benefits than their coun-terparts at smaller companies. Only 51 percent of sole proprietors and freelancers as well as people at companies from 2–10 people say they are satisfied with their healthcare benefits, compared with 60 percent of people at companies between 11 and 250 people, and 68 percent of people at companies with more than 250 people.

Future of Work

Importantly for this paper, there’s a large difference between how many respondents say they are satisfied with healthcare benefits depending on if they receive them from the government or their employer. Across cities, 71 percent of respondents who receive healthcare benefits from their employer say they are satisfied versus 57 percent who receive it from private insurance and 59 percent who receive healthcare benefits from the government.

People are the least satisfied with parental leave. Across cities, respondents say they are the least satisfied with parental leave among the three benefits they were asked about (healthcare and retirement being the other two): Only 40 percent of respondents say they are satisfied with parental benefits. In OECD countries, mothers are given 18 weeks paid leave on average, and when accounting for additional paid parental and home care leave, that number increases to an average of 54 weeks. The U.S. is the only OECD country with zero weeks of government mandated paid maternity leave. For mothers who are able to take time off, it may be costly to leave the work-force, as the actual take-home pay of new mothers varies as a percentage of their annual income. In the United Kingdom, for example, mothers are entitled to 52 weeks of paid leave after having a child, but the average mom receives 30 percent of their income while on leave, making the equivalent full-time weeks of paid leave only 11.7.

Paid time off for fathers is less common in the OECD and other countries. On average, OECD countries offer just over eight weeks of paid father-specific leave, either through paid paternity leave or paid father-specific parental or home care leave.74 The U.S. is among six countries that don’t provide 74 OECD Family Database: Parental Leave Systems

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The Future of Work and Cities

any requirement for paid time off for fathers. Unsurprisingly, a lack of government mandated family leave has led to disparities in uptake and access for American workers. According to December 2019 Congressional testimony from Vicki Shabo, Senior Fellow for Paid Leave Policy and Strategy at New America, only 19 percent of workers in the U.S. have paid family leave to care for a child/parent or manage a serious illness. 75

Women and lower-income workers tend to be less satisfied with all benefits. Women say they are less satisfied with all benefits compared with male respondents (59 percent of women say they are satisfied with health benefits versus 65 percent of men; 46 percent versus 53 percent for retirement; and 37 percent versus 44 percent for parental benefits). As companies and policymakers consider how to improve the underrepresentation of women in industries or in leadership positions, the data from this survey suggest that benefits are a critical consideration.

A larger gap between satisfaction appears across income groups: People with higher incomes tend to be more satisfied with their benefits, indicating that affordability and access are major factors in benefits satisfaction. Seventy-three percent of people who make over $200,000 a year say they are satisfied with healthcare benefits compared with 56 percent of those who make less than $50,000; this income-related gap also extends to satisfaction with parental benefits (52 percent versus 36 percent) and retirement benefits (68 percent versus 41 percent).

75 https://www.newamerica.org/better-life-lab articles/testimony-vicki-shabo-senior- fellow-paid-leave-policy-and-strategy/

Future of Work

A full list of respondents’ satisfaction with parental, health, and retirement benefits, by country, gender identity, worker role, and income is in the Appendix.

Relative to healthcare, fewer respondents say they are satisfied with their retirement benefits. Across cities, less than half—49 percent—of respondents say they are satisfied with their retirement benefits, which reflects the mounting pressure being put on retirement benefit systems globally.

According to the World Health Organization, by 2020 the number of people over 60 will be larger than the number of people ages 5 and younger, and by 2050, over 60 countries will have more than a third of their population above the age of 60. As the share of retired people increases, policymakers around the world are increasing the age of retirement in order to keep retirement and pension plans solvent: As of 2016, the average person who enters the workforce at 20 won’t retire until they are 65.8 years old (for men) or 65.5 years old (for women), up from 64.3 and 63.4 for workers leaving the work-force in 2016. In the Netherlands, a worker who entered the workforce at 20 years old in 2016 won’t be eligible for retirement until she’s 71.76

Encouragingly, the age group that reports the highest share of respondents satisfied with their retirement benefits are also the oldest: Of respondents over 65 years old, 56 percent say they are satisfied with their retirement benefits.

76 OECD, Pensions at a Glance

10 — Benefits

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The Future of Work and Cities

How people receive benefits will change as nontraditional work continues to increase. Today, more than one in 10 workers in the U.S. rely on nontraditional work for their primary income, and at least as many engage in it to supplement their take-home pay.77 “Nontraditional” encompasses a range of types of work, including part-time, on-call, temp, contract, and independent contractor arrangements. The landscape of nontraditional work is broad, diverse, and changing. For example, 40 years ago, a business security guard might have been hired directly by the company but now is likely to be hired by a contracted security company. Jobs that may be thought of as “traditional,” such as being a software engineer or a real estate agent, are often classified as independent contrac-tors. And while the portion of the workforce in the

“gig economy” and people finding work through online platforms is small, it is growing rapidly: According to a recent JPMorgan Chase Institute study, online platform work has grown by about 500 percent over the last five years.78

Nontraditional workers can at times have multiple employers or irregular paychecks, making access to benefits particularly important, but in the U.S., their ability to access workplace benefits and protec-tions is significantly lower than it is for traditional full-time workers. In the U.S., access to health insurance is more than 20 percentage points lower for respondents who are nontraditional workers: 63 percent of part-time employees, 64 percent of contractors, and 61 percent of sole proprietors/freelancers say they have access to health insurance, compared with 88 percent of full-time employees.

77 Cornell ILR and Aspen Institute Future of Work Initiative, Gig Economy Data Hub

78 JP Morgan Chase Institute, The Online Platform Economy

For people outside the U.S., where access to health insurance and other benefits varies depending on national systems, this difference between full-time workers and nontraditional workers is much smaller: For respondents in Europe, 65 percent of full-time workers have access to health insurance compared with 57 percent of sole proprietors/freelancers; in Asia, those numbers are 78 and 75 percent, respectively.

Respondents who are nontraditional workers in the U.S. also report much lower levels of access to benefits like paid vacation, paid sick leave, retirement plans, workers compensation, parental leave, and tuition waivers: For example, 83 percent of people who work full-time say they have access to paid vacation, compared with just 43 percent of people who work part-time and 31 percent who are employed as contractors. They also access benefits differently than traditional workers. In the U.S., 65 percent of full-time employees report having access to health insurance through their employers, while only 4 percent of sole proprietors/freelancers reported access through their employers. And 37 percent of sole proprietors/freelancers access health insurance through Medicare/Medicaid, 21 percent through individual private insurance, 14 percent through a spouse’s employer, and 15 percent said they currently don’t have health insurance.

A full table of how respondents say they access benefits can be found in the Appendix.

10 — Benefits

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The Future of Work and Cities

PORTABLE BENEFITS CAN PROVIDE FLEXIBILITY FOR PEOPLE AND COMPANIES.A new solution for addressing some of these challenges is a concept called portable benefits; portable benefits are attached to a worker rather than to a particular job and can be funded by multiple sources, including multiple employers, and are available to all workers regardless of work arrangement.

If workers have access to benefits that were portable across work arrangements, they may be more likely to make a job change or take on an entrepreneurial endeavor. At the federal level, Senator Mark Warner and a bipartisan group of co-sponsors have introduced the Portable Benefits for Independent Workers Pilot Program Act,79 which would require the U.S. Department of Labor to award competitive state and local-level grants to support portable benefits experimentation. Similar legislation has been introduced at the state level, such as a Massachusetts bill in January 2019 to establish a portable benefits innovation fund.80

79 Portable Benefits for Independent Workers Act

80 Commonwealth of Massachusetts. “S.211 - An Act Establishing a Portable Benefits for Independent Workers Innovation Fund.” 191st General Court. Introduced January 22, 2019

CONCLUSION

Three major trends define the 21st century: urbanization, a technological revolution poised to impact millions of workers, and climate change. On their own, any one of these megatrends pose significant challenges for our society. Combined, the collective impact of urbanization, automation, and climate change is poised to dramatically reshape the way we work and live, and, as the people surveyed for this work reveal, simultaneously present us with many difficult and complex challenges. Their scale is intimidating and they threaten to disrupt core parts of the human experience: where and how we live and work. That said, through their support for policy changes and new ways to tackle these problems, the respondents in this survey remind us that people, companies, and leadership in cities around the world have an opportunity to make progress and enact large-scale, meaningful change.

The work of the partnership between WeWork and the Aspen Institute’s Future of Work Initiative doesn’t end with this paper. Through this work and the thousands of people who answered questions about their experiences, expectations, and concerns, we hope to start a conversation and spark action toward addressing the challenges and opportunities we present.

We’ve covered some big ideas for tackling the challenges presented in this paper. What’s yours?

Conclusion

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The Future of Work and Cities

APPENDIX Data Collection and Sampling WeightsWe distributed the survey to WeWork members and the general workforce using the survey platform Qualtrics. Qualtrics also developed a panel of demographically representative respondents for each city. In the U.S., we relied on data from the U.S. Census Bureau to make sure that surveys were sent in proportion to the gender, income, educational, and racial distribution of each city. For cities outside of the U.S., we used data from Oxford Economics to ensure that surveys were sent in proportion to the gender and educational makeup of each city.

Data were collected from March–April 2019. A subset of WeWork members (around 1,500) received the survey in December 2018.

The City Index MethodologyThe scores correspond to the quintile that each key factor’s support falls into, across all key factors within a city. Quintiles are defined as five equal ranges between the maximum level of agreement and the minimum level of agreement across all key factors in a city. For example, in the Bay Area, only 18 percent of people agreed with the statement on housing (“I am satisfied with the quality and affordability of housing in my city”). Meanwhile, 72 percent of people agreed with the statement on innovation (“My city has a thriving innovation ecosystem”). The range between 72 percent and 18 percent is 54 percentage points. Dividing 54 percentage points into five equal ranges creates a quintile that is roughly 11 percentage points wide. Any key factor that falls between the minimum (18 percent) and one quintile above (29 percent) is given a score of “1.” Any key factor where the range falls between 29 percent and 40 percent receives a score of “2,” and so on. In this way, each city’s scores are relative to its own performance, and it’s easy to compare the top performers in each city against another.

Appendix

43

The Future of Work and Cities

Number

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Number

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

Cities

Bay Area

NYC

Chicago

LA

DC

Seattle

Atlanta

Denver

Portland

San Diego

Dallas Ft. Worth

Philadelphia

Houston

Charlotte

Detroit

Miami

Nashville

Boston

Austin

Kansas City

Minneapolis

Raleigh

Greenville

Salt Lake City

Phoenix

Cities

Tampa

St. Louis

Las Vegas

Pittsburgh

Columbus

London

Shanghai

Ciudad de México (Mexico City)

Seoul

Bangalore

Sydney

Berlin

Buenos Aires

São Paulo

Tel Aviv-Yafo (Tel Aviv-Jaffa)

Paris

Toronto

Madrid

Dublin

Singapore

Hong Kong

Bogota

Beijing

Barcelona

Vancouver

List of Surveyed Metro AreasWeWork MemberSurvey Data

N

N

N

N

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

WeWork MemberSurvey Data

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

N

N

N

N

Appendix

44

The Future of Work and Cities

Country

US

Canada

Columbia

Argentina

Mexico

Brazil

Spain

Germany

Ireland

UK

France

Australia

Israel

India

China

Hong Kong

South Korea

Singapore

Total

Health Benefits

63

61

59

57

56

51

63

61

49

55

74

55

52

83

86

39

47

55

62

Parental Benefits

41

40

35

31

42

47

44

32

35

39

45

38

23

72

57

28

20

40

40

Retirement Benefits

52

45

33

33

46

31

35

43

39

51

36

46

40

70

83

32

26

36

49

Reported satisfaction across benefit type and country/locality (in percent)

Appendix

45

The Future of Work and Cities

Their employer

Individual private insurance

Medicare / Medicaid (or other public provider)

A spouse's employer

Professional Association, union, or guild

A parent

Other

No health insurance

Total

52%

15%

10%

10%

4%

3%

2%

6%

Employed Part-Time

18%

33%

9%

13%

12%

4%

2%

9%

Employed (Contractor)

20%

20%

14%

16%

1%

2%

9%

18%

Sole Proprietor/ Freelancer

4%

37%

21%

14%

2%

2%

5%

15%

Employed Full Time

65%

8%

8%

8%

3%

3%

1%

4%

Health Insurance Access by Employment Status (U.S. workers) 

Appendix