The Role of Government to Mitigate Unemployment during the COVID-19 Pandemic in Pakistan

Abstract

The COVID-19 pandemic has posed unprecedented challenges to economies worldwide, leading to severe disruptions in employment and livelihoods. This article delves into the critical role of governments in managing and mitigating the employment crisis during the pandemic. Drawing on a comprehensive analysis of governmental responses and policies implemented across different countries, the study explores the multifaceted dimensions of governmental intervention. The article examines how governments have navigated the complex landscape of employment support, focusing on measures such as wage subsidies, unemployment benefits, job retention schemes, and support for vulnerable groups. The efficacy of these policies in stabilizing labor markets and protecting workers’ rights is assessed in light of the evolving pandemic situation. The article considers the challenges governments faced in balancing public health imperatives with economic recovery goals. It explores how policy decisions regarding lockdowns, business closures, and social distancing measures have directly impacted employment and unemployment rates. The role of government in fostering innovation, digitalization, and the growth of new sectors that emerged during the pandemic is also discussed. Governments’ efforts to facilitate transitions in the labor market and promote reskilling and up skilling initiatives are explored as a means to build a more resilient and adaptable workforce in the face of future uncertainties. The article delves into the implications of government responses for different sectors and industries, highlighting variations in the impact on the formal and informal economy. The paper concludes with key lessons learned from the government’s role in managing employment during the COVID-19 pandemic. It emphasizes the need for comprehensive and flexible policies, collaboration between public and private sectors, and the imperative of prioritizing social protection measures to ensure a sustainable and inclusive recovery.