People had to remain unemployed for 95 days for Covid-19: CPD study
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The Covid-19 pandemic induced economic shutdown and lockdown made more than 60 per cent of employed people in the informal sector unemployed and they could not find jobs for 95 days, a study of the Centre for Policy Dialogue (CPD) revealed today.
As a result, many families fell into distress and a large section of unemployed people had to become agriculture workers even though the farm jobs had lower income, it added.
"Hidden unemployment has increased," Prof Mustafizur Rahman, distinguished fellow of the CPD and core group member of the Citizen's Platform for SDGs, Bangladesh, said while presenting a study report at the two-day conference on "Bangladesh Emerging from the Pandemic: Coping Experiences and Policy Choices".
The Citizen's Platform for SDGs, Bangladesh and CPD jointly organided the event at the Brac Centre Inn Dhaka.
The study, carried out among 2,600 households in rural and urban areas in late January to early February this year, said most of the people could find jobs following the recovery of economic activities but there was income erosion.
About 45 per cent of households had lower income compared to the pre-Covid-19 period, said Rahman at a session co-chaired by Asif Ibrahim, core group member of Citizen's Platform for SDGs.
Rahman said more than 40 per cent of the employed population reported that their employment situation was worse than the pre-Covid-19 period.
About 86 per cent of individuals reported that they are not earning enough to meet their daily necessities, according to the findings of the study.
"The decline in income has pushed a significant number of people into lower-income groups - indicating a higher poverty incidence," he said.
Rahman said there is an urgent need to enhance cash transfers to the marginalised and affected households.
"Households urgently need to withstand the immediate loss of income and reduced expenditure. Higher consumption expenditure will also help to boost domestic demand and create opportunities for employment," he said.
He suggested higher coverage and budgetary allocation for social safety net programmes in the form of cash transfer.
Investment in labour-intensive rural road and infrastructure would be beneficial to stimulate the rural economy, he said suggesting a second stimulus package to support lower income people to recover from the shock of the crisis.
Asif Ibrahim said the government needs to provide additional incentive to labour intensive sectors and resume labour intensive infrastructure projects.
He said it is time to make reforms and action plans for inclusive development of the country.
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