WFH linked to significant mental health gains, a study of 16K employees finds

The study, led by researchers from the University of Melbourne and partner institutions, analysed data from more than 16,900 employees between 2002 and 2019. It found that employees working between 50% and 75% of their hours remotely reported the greatest improvement in mental health—particularly women already dealing with mental health challenges. 

“WFH arrangements have large positive effects on women’s mental health, provided that the WFH component is large enough,” the researchers wrote in the January 2026 publication. 

For men, commuting time emerged as a key stress factor. A 10-minute increase in one-way commute time was associated with a measurable decline in mental health scores among men with poorer existing mental health. Women’s mental health remained largely unaffected by commute duration. 

Average one-way commute times during the study period stood at 27.2 minutes for women and 30.5 minutes for men, higher than averages recorded in the UK, the study noted. 

Importantly, researchers found that the mental health benefits of remote work extended beyond the elimination of commuting, indicating broader psychological advantages. 

Women working 50–75% from home saw an increase of 0.2 standard deviations in mental health scores, particularly those at the lower end of the mental health scale. 

Lead researcher Ferdi Botha and colleagues used panel data models with fixed effects to isolate the impact of work arrangements and commute times from other life changes. The COVID-19 pandemic period was excluded to avoid distortions. “Our findings highlight the importance of targeted interventions and support for individuals who are dealing with mental health problems,” the paper stated. 

The findings come as employers continue to refine hybrid and remote work strategies post-pandemic. Around 36.3% of workers worked from home in 2024, while separate research by the Committee for Economic Development of Australia in April 2025 suggested that remote work saves employees more than AU$5,000 annually in commuting costs. 

Mental health outcomes were assessed using the Mental Health Inventory (MHI-5), with controls for age, marital status, income, education and job satisfaction. The researchers concluded that flexible work policies could serve as an important tool to support employees with existing mental health vulnerabilities.