Pakistan Institute of Development Economics

Sectoral Analysis of the Vulnerably Employed COVID-19 and the Pakistan’s Labour Market
Publication Year : 2020

All the provinces in Pakistan are now experiencing lockdowns, though of different intensities, to ‘flatten the curve’ of the spread of pandemic COVID-19. These lockdowns would have economic effects which could emerge through several channels including, but not limited to, sharp declines in domestic demand, decreased tourism and business travel, export-imports and production linkages, supply disruptions, and health effects. The issue of immediate concern, however, is the effect on the employment situation in the country resulting in major layoffs, especially of those that fall in the vulnerable employment group. This Bulletin would, therefore, focus on the vulnerable employed1. It is important to understand that the various stages of social distancing have differential effects on different economic sectors, and consequently on the layoffs among the vulnerably employed. Similarly, sectoral effects also vary under each stage of social distancing. This is important because the government protection policies must take these differences into account.