How COVID-19 is Affecting Employment in Egypt?

How COVID-19 is Affecting Employment in Egypt?

April 7, 2020

COVID-19 has affected all industries nowadays, businesses are uncertain about their situation in the next few months where every day brings additional challenges and risks for some, while opportunities and profits for others.

To have a look at the whole picture, Marketeers Research conducted qualitative and quantitative researches to study how this crisis affected both businesses and consumers

In the upcoming days, we will share with you some of our insights; and we will start today by elaborating How COVID-19 Affected Employment.

According to IHS Markit Egypt PMI® Report on 5/4/2020, many Egyptian firms reduced their labor as they lacked demand on what they produce. This led to a fifth consecutive monthly drop in employment in the non-oil private sector. However, the decrease was marginally softer than in February 2020. 

Employment Status from the Business Perspective

Marketeers Research conducted 14 Qualitative in-depth interviews with various companies ranging from SMEs to MNs in different industries: FMCGs, Home Appliances, Bakeries, Travel Agencies and Service Companies such as: consultancy, sports, online food delivery.

When we explored how the outbreak of COVID-19 affected their work process; they all agreed that they prioritize their employees and are not planning to downsize or even cut employees’ salaries.

However, this does not mean that they are certain about the future of their businesses but, they hope that they won’t be obliged to reach these decisions

White and Blue Collar Employees’ Productivity Level after COVID 19:

About 50-100% of white-collar workers are currently working from home whenever it is applicable, while 50% of blue-collar workers utilize a rotational system to be available in factories and offices based on the nature of their work.

However, they are all ensuring safety precautions, keeping distance between workers and relieving those who suffer from chronic diseases.

Blue-Collar employees’ productivity is reduced as these jobs depend now on a rotational system, which means that they are not working with their usual full capacity.

On the other hand, white-collar employees productivity increased as they have enough time to finish their tasks without wasting time daily in Egypt’s heavy traffic and have more flexible hours to deliver their assignment.

Employment Status from the Consumer Perspective

Based on our consumer survey results conducted with 600 respondents, consumers are pessimistic about current & future employment and income situation.

Employment Situation:

Income Situation:

Conclusion

It is obvious the world of work is profoundly affected now, with both employers and employees in Egypt swapping work dynamics, too fast in too little time after the Pandemic, which brings us to the thought of how businesses and employees adapt to change and start innovating to survive?

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