Although almost all those who had lost their jobs in April to May last year because of the pandemic-induced economic downturn found jobs by February this year, but 86 per cent said they are not earning enough to meet their daily necessities. A recent survey conducted by the Centre for Policy Dialogue (CPD) in association with Oxfam Bangladesh stated that people’s working hours shrank significantly, and they cut food and other expenses, obtained credit and lost their savings. If the government fails to take effective livelihood measures and generate employment, the second wave of the pandemic may turn out to be the worst.
In the survey, more than 60 per cent of 2600 respondents lost their jobs at some point in April and May in 2020 when the lockdown was in place to quell the virus. Most of the incremental employment was generated in the agriculture sector (18.45 per cent). At the same time, many people left the services sector (4.38 per cent). Given the nature of economic recovery, it is likely that structural transformation went backwards. About 78 per cent of the households surveyed had reduced expenditure to cope with the impact of the pandemic, while 52 per cent changed dietary patterns involuntarily. Surprisingly, only 20 per cent of the households received some form of support from the government. A higher number of households got support from private sources, such as friends, family, neighbours, and charities. The study found more than 85 per cent of the people who had jobs before the pandemic were unemployed for more than one month after the virus hit the country. The decline in income has pushed a significant number of people into lower-income groups, indicating a higher poverty incidence.
Noted economists have said that coronavirus had a hostile effect on everyone in Bangladesh, but the proportion of the hostility on some vulnerable and disadvantaged people was much higher. The people include tea garden workers, victims of river erosion, tribal, the untouchables, people from chars and haors, and floating workers in Dhaka. The pathogen has also hit small and medium industries. The government should invest in labour-intensive rural road and infrastructure to stimulate the rural economy. This will lead to employment and earning opportunities for various types of workers and help in stimulating the domestic market. Localisation of such public investment programmes should be taken into cognizance.
