Job creation key to Covid-19 recovery: Economists

Bangladesh should focus on creating more employment opportunities for those who lost jobs due to the Covid-19 shock, which in turn will help this country recover sustainably from the pandemic’s economic fallout.

A study conducted by the Centre for Policy Dialogue (CPD) further recommended that the government should take on more rural development projects for generating jobs and addressing vulnerabilities in the labour market.

The government should also take initiatives to increase private investments for boosting employment opportunities, the report added.

Presenting the report at a conference on “Bangladesh Emerging from the Pandemic: Coping Experiences and Policy Choices,” Distinguished Fellow of the CDP Mustafizur Rahman said, “Hidden unemployment has increased, so we need to prioritise the labour market.

The Citizen’s Platform for SDGs Bangladesh and CPD jointly organised the two-day event in Dhaka that ended on Monday.

Mustafizur continued, “Pandemics such as the Covid-19 impacts the labour market first, causing loss of income. Many who were affected by the crisis are yet to recover their pre-Covid earnings. To facilitate a recovery, the labour market needs to be sustainable.

“Labour market vulnerabilities can put the economy at risk. The quality of sustainable livelihood depends on the sector’s income. If not resolved, such issues will negatively impact Bangladesh’s development aspirations, and its plans to achieve Sustainable Development Goals.”

Requesting immediate support measures to help mitigate the urgent needs of individuals and households of marginalised groups, he said, “Restoration and rejuvenation of the labour market is one of the key pathways to sustainable recovery of the marginalised.”

The CPD report recommends that the employment scenario and labour market need to be designed keeping in consideration the immediate, short term and medium term ramifications of the pandemic.

The study, carried out among 2,600 households in rural and urban areas from late January to early February this year, revealed that most of the respondents managed to find jobs after economic activities resumed, but they suffered income erosion.

Providing a few more details, Mustafizur said, “More than 40 per cent of the employed population reported that their employment situation was worse compared to the pre-Covid-19 period. About 45 per cent of households had lower income compared to that period as well.

“About 86 per cent of individuals reported that they are not earning enough to meet their daily necessities. The decline in income has pushed a significant number of people into lower-income groups – indicating higher poverty.”

He added, “Households urgently need to tackle the immediate loss of income and reduced expenditure. Higher consumption expenditure will also help boost domestic demand and create employment opportunities.”

Addressing the event, Core Group Member of the Citizen’s Platform for SDGs Asif Ibrahim said, “The government needs to provide additional incentives to labour intensive sectors, and resume labour intensive infrastructure projects.”

It is time to make reforms and action plans for ensuring inclusive development of the country, he added.