Policy Briefs

The Impact of COVID-19 on Middle Eastern and North African Labor Markets: Glimmers of Progress but Persistent Problems for Vulnerable Workers a Year into the Pandemic

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No.

PB 57

Publisher

ERF

Date

June, 2021

Topic

I. Health

J. Labor and Demographic Economics

Wage workers in Egypt, Jordan, Morocco, and Tunisia, particularly informal workers, have experienced layoffs and reduced hours and earnings due to COVID-19.
Between November 2020 and February 2021, there were some improvements in labor force participation and employment in Morocco and Tunisia, as well as reductions in unemployment.
Although the majority of employers and the self-employed report their businesses are open and operating, hours are reduced and the majority report lower revenues compared to 2019.
Almost half of households reported their income had decreased compared to February 2020, and in most countries the poor experienced the largest income losses.
Until the public health and overall economic situation improves, it will be difficult for the labor market to recover. Accordingly, the social safety net can play a critical role until recovery occurs.
In most countries, social protection measures have reached only a small fraction of the population, a declining share from November 2020 to February 2021, and social protection systems remain poorly targeted.
Social protection that is carefully targeted to those low-income households experiencing job and income losses is much needed.