As the COVID-19 pandemic continues to ravage the health and safety of the citizens of Bangladesh, the economy plummets due to mandatory closure. Low income and/or labor-intensive jobs, which represent most of the informal sector and a significant share of SMEs, have been most affected. Many of these jobs are temporary and will come back as the economy opens. However, some of the job losses will be more permanent. According to CRI estimates, the “permanent” impact job loss is estimated to be around 6 million, which would nearly double the unemployment rate. It would affect approximately 24 million people.
This analytical report looks at the impact of the COVID-19 pandemic in terms of job loss. It provides a deep dive analysis into vital factors that influence job creation, captures current initiatives by the Government relevant to employment, and offers some key points to consider for policymakers in terms of job creation, as they work on the economic recovery plan and the 2020-2021 fiscal budget in the next 12 months.