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COVID-19 Outbreak: Sectoral Impact, And Strategic Recommendations

Published date: 02/11/2021


COVID-19 has affected nearly all countries and more than 50 million people by 2020. It puts governments in a position of extreme uncertainty, forcing them to make severe trade-offs to address the health, economic, and social issues it brings. By the spring of 2020, more than half of the world's population had been subjected to a rigorous containment lockdown. Beyond the coronavirus's health and human tragedy, it is now widely acknowledged that the pandemic produced the worst economic crisis since World War II.

In response to the COVID-19 issue, several governments at all levels have acted fast, using a place-based approach to policy responses and enacting national and subnational initiatives. Governments are providing substantial financial support to defend enterprises, households, and vulnerable populations on the socioeconomic front. Since March 2020, they have spent more than USD 12 trillion globally. Many countries, including the European Union, have shifted public funds to crisis priorities, such as health care, SMEs, vulnerable populations, and crisis-affected regions. Let’s discuss the COVID-19 impact on the following major industries,

Food Industry-

The COVID-19 epidemic is still putting strain on the agri-food industry, both from a business and labor standpoint, with some sectors bearing a disproportionately heavy impact. One of them is the meat processing industry. As the pandemic's repercussions on our food systems continue to emerge, the lessons learned from outbreaks in processing plants in several key meat-producing countries are catalyzing reforms that will help the sector grow sustainably.

Construction Sector-

The COVID-19 pandemic has wreaked havoc on the construction industry, which is very susceptible to economic cycles. On the plus side, because of its ability to create jobs, construction has a lot of potentials to drive recovery; in turn, recovery measures can help the sector's development towards sustainability and digitization. To foster a human-centered recovery of the construction sector from the crisis, tripartite cooperation and social discussion, as well as international labor norms, are essential.

The road and the transport sector-

The road transportation industry is critical to social and economic growth because it allows people to move freely across jurisdictions and countries. However, many countries throughout the world have imposed limitations on domestic transit and/or closed border crossings for road freight transport services in an attempt to halt the spread of COVID-19. Governments, social partners, and parties to the road transport supply chain – such as shippers, receivers, transport purchasers, and middlemen – must move quickly to address decent work difficulties for these crucial workers if the crisis is to be properly addressed.

Automotive Industry-

Factory closures, supply chain disruptions, and a drop in demand have all impacted the automotive industry hard. The influence has spread around the world thanks to just-in-time production procedures. Small and medium-sized businesses are among the hardest hit, with millions of employments in jeopardy. Automakers are crucial to reviving the global economy. Not only through making life-saving ventilators and facemasks, but also by developing new technologies. Sustainable industrial policy and tailored support are essential for long-term recovery – and for rebuilding better – with good jobs for more women and men.

Textile, Clothing & Footwear Industries-

Workers are being urged to stay at home, factories are closing, and global supply chains are coming to a halt, threatening the textiles, clothing, leather, and footwear industries' survival. Order cancellations have wreaked havoc on thousands of businesses and millions of people. We urgently require unity and coordinated action across industry supply networks.

Education Sector-

As roughly 94 % of all students have experienced school closures, teachers have had to adapt to a world of almost universal online education. Most instructors and their organizations have accepted this challenge, even though many teachers in underdeveloped nations lack the necessary skills and equipment to conduct successful distance education. As governments explore reopening schools as solitary confinement laws are reduced, the safety of students and staff must be prioritized, with the social distance of students, access to personal protective equipment, and frequent virus testing being crucial.

Tourism Sector-

Tourism is an important source of employment and economic growth. COVID-19, on the other hand, has drastically altered this. The impact on tourism businesses and workers, the bulk of whom are young women, has never been seen before. In cooperation with governments, employers' and workers' representatives, and taking into account applicable ILO international labor standards, timely, large-scale, and, in particular, coordinated policy actions are required at both the international and national levels.

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