The International Labour Organisation (ILO) has tipped developing countries, including Malawi, to address structural challenges and root causes of decent work deficits created by the Covid-19 pandemic.
In its 2022 World Employment and Social Outlook Trends, ILO says there is need for a fiscal policy mix targeting the creation of productive employment supported by industrial policies, skills development and active labour market policies.
The report says recovery this year will continue to be subdued by Covid-19, as such, governments need proactive policies as the pandemic threatens to accelerate widening inequalities across and within economies.
The report, which indicates that global unemployment is projected to stand at 207 million in 2022 surpassing its 2019 level by some 21 million, says recovery will be serious for developing nations which have high levels of inequality, more divergent working conditions and weaker social protection systems.
Reads the report in part: “As countries continue to experience difficult conditions, it will be essential not only to protect jobs, but also to ensure that economic activity can rebound.
“To improve labour market resilience, institutions need to be further strengthened most notably social protection systems.”
In an interview on Sunday, Employers Consultative Association of Malawi executive director George Khaki said job losses have indeed become inevitable in the Covid-19 era.
“This year also remains uncertain for jobs with the Omicron variant causing havoc, especially with the country’s major trading partners.”
He said the shortage of foreign exchange is also worrisome, observing that it affects imports, including fuel and fertilisers that are important drivers of the economy.
Institute for People Management in Malawi president Godwin Ng’oma said in an interview that despite some firms re-employing people last year, this did not bring recovery in the job market.
He said the country should expect a similar trend this year.
Malawi Congress of Trade Unions president Charles Kumchedwa is on record as having said employers are hoping for the best as businesses adapt to the new normal and learn to live with the pandemic.
Due to the impact of the Covid-19 pandemic, figures from the Ministry of Labour showed that 12 308 people in the private sector lost jobs last year.
