The public sector should follow the private sector’s example on remote work; having popularized it five years ago, the private sector now is dialing it back. For instance, one of the largest employers in Colorado, Amazon, has eliminated remote work arrangements.

Jamie Dimon, JPMorgan Chase’s CEO, was one of the first leaders in his industry to welcome employees back to the office during the pandemic. Even though he has received criticism from his employees who have circulated a petition asking the company to modify the five-day return-to-office policy, he has stood strong and has pointed to his firm’s record profits in 2024.

The economy would benefit from the government and private sectors increasing return-to-work policies. The government sector, however, is the state’s largest employer and could make the fastest impact of any single employer. According to Common Sense Institute’s January jobs report, government employment reached 500,000 for the first time in Colorado’s history in December after sustained growth throughout 2024.

Remote work had benefits, but when it comes to government workers, the costs far outweigh them. The public — taxpayers who fund these jobs — bear the brunt of hollowed-out office buildings, sleepy city centers and the economic ripple effect of shuttered businesses, declining foot traffic and a shrinking tax base.

President Donald Trump’s recent executive order requiring federal employees to return to the office is the latest effort to better activate urban centers. Remote work was once an anomaly, but COVID-19 turned it into an entrenched practice, particularly among government employees. Since then, policymakers have wrestled with the question: does remote government work serve the public good?

Colorado has made its stance clear. The governor issued an order championing remote work as a feature of state government employment. Local policies remain inconsistent. The city of Denver requires its employees in the office three days a week, up from two before 2022. State employees have a patchwork of hybrid and remote work options, with some able to work remotely for extended periods — even from outside the state. Jefferson County employees, for example, may work from outside Colorado for up to 30 consecutive days.

Colorado had one of the highest shares of remote workers in the country leading into the pandemic, and today it leads the nation. According to the Bureau of Labor Statistics, 16% of Colorado workers perform some of their work remotely, and 15.8% work remotely. Among government workers, the figures are much greater.

And yet, 84% of Colorado’s workforce — those who don’t have the luxury of remote work — must navigate the economic fallout. The irony of taxpayer-funded jobs eroding the very economic infrastructure those taxes support is not rhetoric; it’s a measurable reality.

The Common Sense Institute recently analyzed the economic impact of the president’s federal return-to-office order and applied similar modeling to state and local government employees in Colorado. The numbers are striking: nearly 100,000 government employees in Colorado work remotely at least part of the time. An estimated 23,736 federal civilian, non-U.S. Postal Service employees perform some of their work remotely, with 5,520 working entirely remotely. Additionally, 70,880 state and local employees work fully remotely.

The direct consequences of this policy are evident in our cities, particularly in downtown Denver. Office vacancy rates are at historic highs. Businesses serving those employees — restaurants, coffee shops, dry cleaners, and retail stores — are closing. When we come together to work, we foster economic growth, human interaction, innovation and strong cultural ties.

The evidence is overwhelming: in-person work is an economic force multiplier. Cities are engines of economic activity, and when workers are physically present, the benefits compound.

Research shows that proximity enhances productivity, mentorship, and spontaneous collaboration. In “Triumph of the City,” economist Edward Glaeser writes, “Cities generate economic growth because ideas spread more easily when smart people are physically close to one another.” This principle applies doubly to the government sector, where we need public servants to collaborate, innovate and respond to mounting community needs.

The Common Sense Institute’s findings confirm this reality. If remote federal employees returned to in-person work in Denver, the result would be 12,250 new jobs in addition to their own and a $2 billion increase in GDP.

While the president’s order can’t include state and local workers, they number even more than federal workers. If state employees returned to in-person work, it would add 11,734 jobs and a $2.4 billion increase in GDP. If local government employees returned to in-person work, it would add 25,536 jobs and a $3.2 billion increase in GDP.

In total, Colorado could see a net increase of 49,520 jobs and a $7.6 billion increase in GDP — a 1.4% economic boost. That might seem small in a single year, but over decades, the compounded effect is enormous — and that economic activity is the best way to close gaps in state and local budgets.

Return to office prevents the erosion of local business revenue and translates into greater tax revenue for city and state budgets. That means more money for public services, from road maintenance to public safety. It even means stability in wages and resources for public employees themselves. Government employees, whose salaries are funded by taxpayers, share a vested interest in the economic health of the communities where they work. The expectation that the public should continue financing remote work privileges, while city centers and small businesses crumble, is unsustainable and inequitable. And, to be clear, the private sector should, and is, returning to office as well.

Government workers supporting and engaging with the communities they serve is essential. Policymakers should recognize that remote work policies for government employees need to be reassessed — not just for economic reasons, but because the effective functioning of government depends on physical presence, collaboration and accessibility.

It’s time for government, the state’s largest employer, to follow the lead of the private sector and return to the office, for the good of Colorado’s economy, our taxpayers and our public sector workforce itself.

J.J. Ament is the president and CEO of the Denver Metro Chamber of Commerce and a member of the Common Sense Institute Board of Directors. Kelly Caufield is the executive director of the Common Sense Institute.