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People involved in informal economy hit hard by Covid

77pc households face loss of monthly income: Says BRAC study report


Published : 24 Jun 2021 09:34 PM

The economic disruptions caused by Covid-19 left many people jobless, especially those belonging to low-income communities and involved in the informal economy. 

Between April and October last year, around 77 percent of the households in Bangladesh saw a decrease in their average monthly income and around 34 percent had at least one member who lost jobs or earning capacity.

To cope with the situation these families used up their savings and took loans, which has led to 62 percent decrease in the average monthly savings of these households, while 31 percent increase in debt. 

The data mentioned above are part of the findings of a joint research by the Center on International Cooperation at New York University, BRAC and UN WOMEN Bangladesh on the changes in demographic, economic and social environments in the secondary towns, peri-urban (upazila) and rural areas of Bangladesh brought on by the rise in reverse migration during the Covid-19 pandemic.

The research findings were unveiled at a virtual international dialogue titled, “Demographic and socio-economic changes induced by the Covid-19 pandemic: Challenges of new circumstances” on Wednesday evening, 23 June. 

A panel of experts, academics, policymakers and development professionals shared their insights at the dialogue, while focusing on the policy priorities identified by the study findings and suggested opportunities to address challenges moving forward.

Leah Zamore, humanitarian crises program lead at the Center on International Cooperation of New York University moderated the dialogue. KAM Morshed, senior director of BRAC, presented the research findings with Shoko Ishikawa, country representative, UN Women Bangladesh, Dr. Daniel Naujoks, interim director, International Organization and UN Studies Specialization at Columbia University School of International and Public Affairs, and Dr. Adam Schwartz, director of health for BRAC USA, participating as panelists in the discussion session.

The study was informed by both qualitative and quantitative methods and relied on a survey of 6,370 households conducted in 10-25 December 2020. The survey was based on a reference period of April-October 2020.

 The study calls attention to the impact of Covid-19 pandemic on both the internal and international migration, compelling people and families to return to their places of origin.

Around 77% of both the internal and international returnee migrants in Bangladesh were struggling to find a job during the survey period.  Among these households, 61% had at least one member who lost a job or earning opportunity during the pandemic. 

Surveyed households reported a 58% decrease in average monthly remittances received during the pandemic. 

The study also finds key gender-based differences in returnee experience. Female returnee migrants, mostly internal ones, are dealing with heightened burden during the pandemic. 

At the discussion session by the panelists, Shoko Ishikawa, country representative, UN Women Bangladesh, said, Bangladesh is one of those countries where schools remain closed for over one and a half years although digital learning opportunities for children are quite inadequate particularly in the rural areas.