Coronavirus adversely impacted labor class

F.P. Report

PESHAWAR: Due to appropriate management of lockdown measures and special incentives offered by the government, there was an improvement in the percentage of job losses from 70% in May 2020 to 31% in August 2020, according to the findings of the Business and Labour Survey.

The survey was conducted in August 2020 to assess the impact of COVID-19 on small businesses and informal jobs engaged in various sectors of the economy in Khyber Pakhtunkhwa. The main findings of the survey were discussed at the roundtable discussion here today which was jointly organized by the Planning and Development Department and the UNDP.

The roundtable was chaired by the Additional Chief Secretary Shakeel Qadir Khan, and was participated by senior officials of the relevant government authorities including the Departments of Planning and Development, Industries, Labour and Relief were present.

The heads of the Khyber Pakhtunkhwa Bureau of Statistics, Directorate of Monitoring & Evaluation and Sustainable Development Unit were also in attendance. Representatives of the USAID and the FCDO also ensured their presence at the roundtable through virtual participation.

The survey interviewed 3,200 business owners and informal wage earners across 32 districts of the province in 8 sectors of the economy including agriculture, construction, food, manufacturing, retail, transportation, services, and wholesale. 13% of the respondents were female. Due to restrictions on movement, the survey was conducted telephonically.

The survey findings revealed that construction and manufacturing sectors were the worst hit sectors in terms of loss in sales whereas food and construction sectors recorded highest proportion of layoffs. During the roundtable discussion on the key survey findings, it was disclosed that the Provincial Government’s imposition of smart lockdown measures and the subsequent lifting of restrictions in a timely manner resulted in an increase in the average daily wage rate of labourers from PKR 315 in May 2020 to PKR 565 in August 2020.

However, only 40% reported being employed even after the lockdown restrictions were completely lifted, which is an issue demanding special attention by the provincial government authorities. The survey has also measured the awareness and sensitisation levels of the respondents about the health associated risks posed by the pandemic.

Across all the sectors, more than 70% of the business owners viewed the threat of COVID-19 as serious as it could be life threatening with serious likelihood of falling sick.

More than two-third of the labourers (68%) responded that the best strategy to minimize their income losses would be to provide cash transfers through the Ehsaas Programme scheme. More than half of the business owners (about 55%) preferred government’s assistance through the interest-free loans on easy installments. As many as 62% of the business owners in the retail and wholesale sectors preferred such loans. Almost 30% of the business owners in construction and manufacturing sectors each preferred tax cuts and reduction in electricity rate from the government.