Telecommuting Boosted in 1998 by Internet & Economy

The number of telecommuters in the U.S. rose to 15.7 million as of mid-year 1998, according to research conducted by Cyber Dialogue, a New York based research and consulting firm.

The long-term telecommuting trendline indicates that as many as 18 million U.S. adults could telecommute by the year 2000, depending on the overall level of employment in the economy at that time.

"The findings indicate that telework is a very dynamic trend closely related to the level of employment in the economy and the growing impact of computers and the Internet," said Thomas E. Miller, vice president of Cyber Dialogue, who directed the research.

The research identified three categories of telecommuters: full-time employees, contract workers and part-time employees who telecommute informally. Full-time employees who telecommute now total 7.4 million workers. These employees work from home an average of 18.0 hours/week at home, or about 2.5 days/week. Almost half are employed by small businesses with less than 100 employees, while 1.8 million (24 percent) work for large companies with 1,000 or more employees.

Over 90 percent of the 4.0 million contract-based telecommuters report that they work for companies with fewer than 100 employees. None reported working for large companies with 1,000 or more employees.

The large segment of 4.3 million part-time workers who telecommute informally were found to be comprised largely of retirees and homemakers who are capitalizing on the full-employment economy to supplement income via home-based work. Almost three out of four of this segment are women, by far the highest ratio of the three telecommuting segments. This group was found to be very low-tech and much more a reflection of the strong economy than of PC and Internet adoption.

Demographically, telecommuters in 1998 are around 42 years of age, slightly more likely to be female (51 percent) than male, and they report median household income of $45,200. Full-time employees tend to be more male (57 percent) and slightly younger, and earn more ($49,500). Contract telecommuters are also more male (58 percent) and earn $46,700 per year, while part-time employees who telecommute informally are somewhat older and earn less ($34,500). (See accompanying charts.)

Telecommuting was defined in the research as working at home for an outside employer during normal business hours a minimum of one day/ month or more. The findings are based on interviews with 2,000 Americans 18 years of age and older completed in July. The research is based on the American Internet User Survey, conducted by Cyber Dialogue. For more on the study, visit the International Telework Association and Council.

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