Coping with the economic effects of COVID-19: an evidence from the Bangladesh labour market

• Published in: SN Business & Economics 2023-06, Vol.3 (7), Article 132
• Main Authors: Khalily, M. A. Baqui, Uddin, Mohammed Jamal, Sultana, Tunazzina, Chy, Naim Uddin Hasan Awrangajeb, Barua, Zapan
• Format: Article
• Language: English
• Subjects: Business and Management; Economics; Finance; Original Article
• ISSN: 2662-9399; 2662-9399
• DOI: 10.1007/s43546-023-00510-8

The world has experienced severe effects of COVID-19. Amongst others, it has affected the labour market. Evidences are largely available on the developed countries. Although some sporadic numbers are available in Bangladesh, no systematic study has been conducted on the effects of COVID-19 on the labour market, and the coping strategies of the affected workers in Bangladesh. This paper examines the effects of COVID-19 on the labour market in Bangladesh and investigates the coping strategies adopted by the affected workers. This study uses survey data of 296 randomly selected samples from six most important sectors, namely, ready-made garments (RMG), port, construction, restaurant, health, and transport. The quantitative analysis is complemented by the qualitative analysis based on two FGDs. It shows that about 73 percent of the workers were affected by the lockdown measures at aggregate level. Around 41 percent of the full-time workers became unemployed during the lockdown period. The RMG sector was least affected. Those in the affected group of the COVID disaster earned an income that was substantially lower than the unaffected. Most of these affected workers survived mostly by dissaving and borrowing from informal sources; and around one-third adopted consumption rationing as coping strategies. Our econometric analysis shows that the workers in informal sector are more affected than those in the organised sector. Similar evidences are also derived from the FGDs, providing more insight into the underlying coping strategies. The findings have both short-run and long-run policy implications to cope with disasters like COVID-19.