Over 41,000 workers laid off amid COVID-19 – Report reveals
Over 41,000 workers were laid off when the deadly coronavirus spread to most regions in the country, a survey report has revealed.
The figure represents 4% of the workforce of 4,311 firms involved in the survey from May 26 to June 27, 2020.
The report, conducted by Business Tracker Survey, sought to establish the impact of the global pandemic on the economy to help the government, development partners and organisations monitor the effects of the pandemic on businesses.
“Only 4.0% of firms indicate that they have laid-off workers, corresponding to 1.4% of the workforce (an estimated 41,952 workers).
“Also, 46.1% of business establishments reported that they reduced wages for 25.7% of the workforce (an estimated 770,124 workers),” the report said.
The findings indicated that Ghanaian businesses are affected through a multiplicity of channels (continued uncertainty, demand, supply and financial shocks).
According to the survey, the shock caused by the COVID-19 pandemic have had considerable impacts on Ghanaian firms.
The novel virus has crippled many businesses and left workers jobless since its outbreak in March.
The survey also revealed that 35.7% of business establishments had to close during the partial lockdown, with 16.1% continuing to be closed after the easing of the lockdown.
The government in its quest to cushion businesses amid the pandemic introduced a GHC600,000 stimulus package, but per the report, only 3.5% of the firms surveyed received government assistance.
The report attributed that to the business owners “not being aware” of government programmes.
“Many firms indicated that they were not aware of support programmes, suggesting the need for increased awareness and clarity on the guidelines and requirements of current programs.”
What’s needed amid the pandemic
The report indicated that policies are needed to support firms both in the short and medium-term.
It noted that the decrease in demand, as well as difficulties in financing cash shortfalls, puts many firms in a difficult position.
Read details of the full report below