COVID-19: ILO's latest analysis of impact on the labour market

The COVID-19 pandemic has sent shockwaves through the global economy, particularly affecting young people. A recent report by the International Labour Organization (ILO) has highlighted how the pandemic is causing a triple shock by destroying employment, disrupting education and training, and creating obstacles for those entering the labor market. This impact is particularly significant in Africa, where informal economies play a crucial role in generating employment opportunities. With 85-86 percent of the employment in Africa coming from the informal sector, the pandemic has had a devastating effect on the livelihoods of many young people. Jellas Atirouwe, the International Labour Organization's employment specialist for East Africa, emphasized that the informal economy has been hit the hardest by the pandemic, leading to a significant decline in employment rates. Atirouwe noted that one in six young people who were employed in 2020 were no longer working by May of the same year. Sectors where young people typically find jobs, such as wholesale and trade, accommodation, and hotel services, have been severely impacted, further exacerbating the challenges faced by young workers. The ripple effects of the pandemic on SMEs and informal economy operators, who are often part of value chains of larger enterprises, have also contributed to the economic downturn, creating a domino effect on employment opportunities. As governments grapple with lower economic growth rates and the need to stimulate demand to revive businesses, young people are facing an uncertain future. Atirouwe highlighted the importance of targeted support from governments to help sectors that have been hardest hit by the pandemic, enabling young people to re-enter the job market and kickstart economic activities. Additionally, the education sector has been disrupted, forcing many young people into online learning, which is inaccessible to those in rural areas lacking internet connectivity. The lack of access to education and training further compounds the challenges faced by young individuals trying to navigate the impact of the pandemic. Despite these challenges, Atirouwe pointed out that young people can seize new opportunities by engaging in sectors like manufacturing or distribution of essential goods such as sanitizers and masks. However, the road to recovery will be long, with Atirouwe cautioning that it will take time for businesses to resume operations at pre-pandemic levels. The ILO has called on governments to implement large-scale and targeted policy responses to support young people during these challenging times. While some governments in Africa have rolled out support packages, including increased public spending in health sectors and tax reliefs, more concerted efforts are needed to address the deepening impact of the pandemic on the younger population. The future remains uncertain, but with strategic interventions and collaborative efforts, young people can hope for a brighter tomorrow.