The accelerated “creative destruction” in labour markets during times of crises: how to use the “essential fact about capitalism” to mitigate the impacts of the current COVID-19 crisis for the poor and vulnerable.
The on-going COVID-19 crisis may have accelerated the inevitable transformation of economies toward automation and digitalisation. However, the subsequent negative impacts on the poor and vulnerable low-skilled workers must be carefully addressed. Therefore, this project suggests for governments to build a database collecting extensive information about workers who lost their jobs; and to establish a partnership with the private sector to study possibilities for restructuring or for promoting entrepreneurship in emerging fields. This initiative would help governments mitigate the crisis effects and cease chances to reduce current mismatches. The result would be a concrete idea with clear mechanisms for implementation.
Image: Courtesy of Samar Abdelmageed