The Sunday Mail
ON Friday May 1 the world celebrated Workers’ Day in the middle of the coronavirus pandemic, which is threatening not just jobs but the global economy. To discuss the impact of the disease on the future of formal employment, work in general and young people, The Sunday Mail Gender and Community Editor Fatima Bulla spoke to International Labour Organisation (ILO) Country Director for Zimbabwe Ms Hopolang Phororo.
Q: What does Workers’ Day mean in the wake of the novel coronavirus?
A: May 1 of each year marks the celebration of Workers or Labour Day — that is, the commemoration of past workers’ struggles against a host of workers’ rights violations, which include long workdays and weeks, poor working conditions and child labour. The Covid-19 health pandemic and the resultant economic and labour market shocks are having a huge impact on the labour market, people’s lives and livelihoods — with the danger of bringing to the fore all past struggles and rights violations. The crisis poses the danger of pushing millions of workers and their families further into vulnerability. The day, thus, remains significant, but with little to celebrate.
Q: What are the prospects for the youth in the world of work?
A: Every year, the ILO undertakes a study, a tracker of employment trends of the youth globally called the Global Employment Trends for Youth. It shows where progress has or has not been made, updates on world and regional youth labour market indicators, and gives detailed analyses of medium-term trends in youth population, labour force, employment and unemployment. The 2020 edition of this report discusses the implications of technological change for the nature of jobs available to young people. It focuses on shifts in job characteristics, sectors and skills, as well as examining the impact of technological change on inequalities in youth labour markets.
Like all the youth worldwide, the youth in Zimbabwe face a world where geopolitical tensions are on the rise. There is an increase in social unrest and global trade barriers have impacted on economic growth, not mentioning the recent epidemic — namely Covid-19 — that carries the potential to further slow economic activity. These developments are particularly detrimental to the youth as their employment prospects, relative to older workers, are more sensitive to economic downturns. Unfortunately, young people are also losing jobs to automation, which is unavoidable as the world faces the fourth industrial revolution. To add to this, the rapid rise in the number of young people with a degree in the labour force has outpaced the demand for graduate labour, pushing down graduate wages.
Unfortunately, not enough jobs are being created for these young people, meaning the potential of millions is not being properly tapped. In addition, it is important to respond to the challenges posed by technology, climate change, inequality and demographics. We need integrated policy frameworks and responsive training systems designed using dialogue between governments, workers and employers.
Q: The ILO says young people will feel the pinch of Covid-19 crisis more; moreso, local young women. Can you shed light on local factors that makes this a reality?
A: There are currently around 1,3 billion young people globally, of whom 267 million are classified as NEET (not in employment, education or training). Two-thirds (181 million) of NEETs are young women, according to the 2020 ILO Global Employment Trends for Youth. The 2019 Zimbabwe Labour Force Survey estimates the NEET for youths (15 to 35 years) at 45 percent and 53 percent for females. Half of the population employed in the informal sector is aged 15 to 34 years old. Given the many roles and responsibilities of women, including care work, it is not surprising that they bear most of the brunt in the face of Covid-19.
Q: Zimbabwe has a large informal sector. Do you think the same global factors will impact the local youth population?
A: Like other businesses, informal economy businesses are experiencing a reduction in customers because of the pandemic. Customers avoid crowded markets. Social distancing between workers in informal markets is difficult because of crowding. The same can be found in other informal sectors like in public transport, vehicle repair and metalwork. Maintaining hygiene by handwashing with soap and water in these sectors is very difficult. Without economic relief for the informal small businesses, this will have negative knock-on effects on poverty in poor communities. Government’s response aimed at economic relief must consider the informal economy, where job and income losses are likely to be severe.
Basic support to the informal economy also matters because of the crucial role it can play in the containment effort during this period. As many informal workers are in contact with large numbers of people, they need to be provided with sanitisers, masks and other protective equipment to protect themselves and others. Water points should also be set up in markets and other informal sector clusters.
Providing targeted assistance to these in the informal economy (or those who receive no other form of social grant) needs to be considered. A special grant could address the needs of the most vulnerable. It could also act as a trickle-up economic stimulus for the economy as a whole. There are also opportunities for significant innovation in the design of such grants, to optimise the economic multipliers in local economies. The use of block chain technology on mobile platforms can circumvent costly banking transactions at the same time providing a high level of security.
Q: How can workers’ be cushioned in light of Covid-19?
A: The Covid-19 pandemic is unprecedented. Social dialogue between governments and social partners presents an invaluable role in developing effective responses at the enterprise, sectoral and macroeconomic level, as demonstrated by historic economic crises. Social dialogue is key in coming up with measures that include balanced crisis management and accelerated recovery, as well as an essential governance instrument with regard to change.
Many countries are being creative in their responses to support the enterprises and the workers such as carrying out a needs assessment surveys of the population to assess how the pandemic is impacting on enterprises and their workers. This information can then help calibrate national responses.
This may result in the Government, throughout the crisis, working with the banking sector and financial institutions to explore measures such as soft loans to SMEs and individuals; debt freezes and other mechanisms to support them. In addition, working with enterprises to propose the establishment of a facility to manage the problem of compensation arising out of breach of contracts caused by issues such as the inability to conduct exports because of the shortage of raw materials will be crucial. Flexibility should be offered by landlords on rentals and encouraging closer collaboration and cooperation between the public and private health systems so that the people’s health needs are catered for.
Q: The job market is dwindling. What measures can be put in place to rescue the situation?
A: I should start by saying that the main response phases are: to give attention to the infected persons and controlling Covid-19 from further spreading; reactivating business activity once the virus spread is under control; and recovery of the economy and all sectors to pre-crisis conditions.
The duration of each phase is and will remain uncertain and the timing to support workers, firms and households should, therefore, remain flexible. It will be long and come in waves.
However, both formal and informal economic sectors will require significant support.
This is an opportunity for all economic sector units to emerge from the shock and become part of a better integrated market economy. The best move is to support entire economic systems, with countries responding differently to support the informal economy.
Zimbabwe’s response has many examples to borrow from with a key fundamental being availability of finances to support initiatives. At the enterprise level, grants to support wages, training, productivity improvements, and the development of new products and services can help avoid layoffs and ensure businesses continue. At the local level, assessment programmes can help firms understand local conditions, and link to production and business networks more effectively, as well as support the informal economy.
As my director-general, Guy Ryder, has stated: “Tailored measures will be needed for the most vulnerable workers, including the self-employed, part-time workers and those in temporary employment, who may not qualify for unemployment or health insurance and who are harder to reach.”
Here in Zimbabwe, we have long been advocating for the extension of social protection/security schemes to the informal economy. There is no better moment than now to put it in motion.
Q: How much impact do you think Covid-19 will have on attaining the UN Sustainable Development Goal 8 (SDG 8), which focuses on providing decent work and economic growth?
A: SDG 8 is about “promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.” This, even before Covid-19, was difficult to attain because the labour market has faced many shifts in expectations. While there are many youth with degrees, the absorptive capacity of the labour market for their qualifications is limited, and technological advances and automation created both opportunities and challenges for youth participation in the labour market. The Covid-19 crisis has created another level of challenges since many possible jobs for the youth will be lost due to company closures and the global and national economies failing to cope post-Covid-19. Opportunities also exist such as how to provide food/services when people cannot leave their homes.
Q: Essential services workers, mostly health personnel, have continued to work during the lockdown. But there are also those sitting at home wondering what the future holds for them. What can you say to both sets of workers?
A: There is a variety of frontline workers: workers in health and those in care institutions. They are facing longer shifts at work and additional care work at home. They are obviously worried, exhausted and emotionally drained. We commend and salute all these workers for the good work that they are doing, sometimes in the absence of the required gear and making huge sacrifices.
They too have families who they leave behind every day, as duty calls. For those at home, it is not easy for them too. They face worries about the future in terms of their careers, incomes and providing for their families. Covid-19 has affected all workers and it is a waiting game. They are waiting for the tide to turn, for the pandemic to end, for a return to a “new” normal life.
Q: Any parting shot?
A: The ILO constitution says “poverty anywhere remains a threat to prosperity everywhere”.
It reminds us that, in years to come, the effectiveness of our response to this existential threat may be judged not just by the scale and speed of the cash injections or whether the recovery curve is flat or steep, but by what we did for the most vulnerable among us. And we know who these are!
