Labor crisis in this pandemic- by Ayushi yadav

In this pandemic we are facing unprecedented times as the coronavirus sweeps the globe.For the time being, even in the short run, the economy is unstable and under extreme condition of inequilibrium.As the demand and supply for labor are varying significantly and to such an extent that it has led to substantial increase in the unemployment level.From those working in restaurants to those making a living by ironing clothes , those involved in construction work , repercussions of this pandemic are ubiquitous. Therefore there is an adverse need for both effective fiscal and monetary policies.The contemplation of governments has resulted in implementation of several policies, for instance several countries like Japan, China, India etc are adopting the wage compensation scheme to help the informal sector.But can we really expect its successful implementation? For every 10 people who successfully applied for unemployment benefits during the crisis ,three or four couldn't get through the overloaded system.Secondly what about those who are not registered labor ?Can we really expect in the country like india where there are thousand of informal sectors running that a ₹ 100  per day earning labor have ever thought of registering himself?The questions remain standstill. 

If I think like an economist, I can say  that the government is facing trade off -restrict commerce in the hope of limiting the disease , recognising that this will hurt the economy and simultaneously workers.Thus we can say there is no reliable forecast on further development of the economic disruption, nor is there any blueprint on how to best deal with this situation. Furthermore in this period of recession, when there is less demand for goods and services it is difficult even for firms to retain full work force and continue to operate profitably.Thus considering the unprecendency of the situation they might switch on to laying off the labor.

But on the other hand  International labor organization is embarked upon suggesting every possible measure that would mitigate adverse effects on labor. Policy responses should focus on two immediate goals: Health protection measures and economic support on both the demand- and supply-side. Secondly protect workers  who are negatively impacted by the indirect effects of factory closures, disruption to supply chains, travel bans, cancellation of public events, etc by providing them employment retention schemes, including short-time work arrangements/partial unemployment benefits and other time-bound support for enterprises, such as wage subsidies and temporary cuts to payroll tax/exemptions from social security contributions, provision of paid leave and extension of existing entitlements to workers, and training leave, grants and related schemes,Time-bound financial/tax relief and income smoothing measures to support business continuity, especially  to MSMEs and the self-employed. 

Lastly building confidence through trust and dialogue is crucial in making policy measures effective. This includes leveraging social dialogue to finetune policy packages so that they best serve those most in need.

I would end my words here by saying that one thing is clear public institutions,social partners and individual must act effectively and coordinately so that the consequences of the corona depression on the labor markets can be overcome quickly and in a socially sustainable manner.