13 JUN,2021 | MEDC
Low-skilled workers have been among the hardest hit by job losses due to Covid. Some of those jobs may never reappear, as the structure of the economy changes in the post-pandemic world. With many unemployed workers still struggling to regain their pre-Covid salaries, income inequalities are likely to further accentuate. That does not bode well for socioeconomic stability. A combination of policies that retains workers in their jobs during a Covid-induced disturbance while simultaneously helping them transition to better economic opportunities, can help reduce medium-term income inequality. Such policies will keep vulnerable workers from falling into unemployment, thus mitigating the increase in inequality due to Covid. Both public and private sectors should invest in worker training programs and supporting unemployed workers to find new openings. Policymakers also need to build resilience to climate change and steer digitalization for inclusive growth.
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