Socio-economic response to COVID-19 towards economic recocovery - focusing on employment

Background

The current global crisis involving COVID-19 has posed unprecedented predicaments on the international community, causing severe disruption of its societies and economies. The shock on the economic and labor markets has been extensive enough to influence not only supply but also demand, causing revenue loss, debts, and redundancies. Specifically, the pandemic has an effect on the quantity of jobs, the quality of work, and situations on specific groups who are more vulnerable to adverse labor market outcomes.

COVID-19 has far-reaching impacts on the labor market. The latest ILO estimates[1] are that the large scale workplace closures in response to COVID-19 have led to a drastic reduction of working hours by 17.3 per cent worldwide in the second quarter of this year. This is equivalent to 495 million full-time jobs that were lost. The Asia Pacific was initially the hardest hit in terms of working-hour losses, with 7.3 percent decrease in the 1^st quarter of this year. This number has increased up to 10.7 percent in the 3^rdquarter.

Due to the quarantine measures and a drastic reduction in economic activities, demand for labor is also diminishing. ILO’s preliminary estimate (on March 2020) suggested that workers around the world have already lost nearly 30,000 work months, with the consequent loss of income[2]. The loss of labor income further implies declining consumption of goods and services, which is detrimental to business stability and economic resilience.

While the virus does not discriminate medically, it does discriminate in the job market. In fact, vulnerable groups are hardest hit by COVID-19. Women, already facing high rates of unemployment, are more susceptible to layoffs, gender discrimination, lack of social protection, and disproportionate care burdens. In 2019, the female labor force participation was 47 percent, while it was 74 per cent for men. The relative decline in employment is greater for women than for men in most countries, and this gap between men and women is becoming wider[3].

According to the UN’s Framework for the Immediate Socio-Economic Response to the COVID-19 Crisis[4], economic recovery is about “protecting jobs and workers; ensuring decent work; and protecting productive assets, protective units and productive networks”. Solid yet flexible socio-economic response is crucial to our societies’ continuity and adaptability, and also to framing our future for the new normal to come.

Governments need to contain COVID-19 and at the same time protect the economy. Efforts to fight coronavirus include protecting workers in the workplace, supporting employment, and stimulating the economy. Active fiscal policies such as tax relief for Micro, Small and Medium Enterprises (MSMEs) and targeted liquidity provisions are some examples that governments apply to stabilize economic activity.

Based on this understanding, CIFAL Jeju organizes an online workshop on COVID-19 and employment. The capacity building online program aims to help raise participants’ awareness on the critical issue of workforce impact in the context of COVID-19 and support the Asian Pacific government officials and leaders of society for them to make and implement policies for inclusive and sustainable economic development. By partaking in interactive discussions, participants will also be able to share best practices regarding the facilitation of employment policies in creating a sustainable future