A ‘New Normal’ as a ‘New Essential’? COVID-19, Digital Transformations and Employment Structures

Abstract

This paper offers a brief reflection on the new policy challenges that have emerged as a result of the COVID-19 pandemic. It argues that a ‘new normal’ should acknowledge the ‘new essential’ (jobs and sectors). First, it examines the policy trade-off between containing the pandemic and avoiding a global recession. In particular, it looks at the economic impact of lockdown on households and firms and, relatedly, the slowdown in global value chain-related trade. Second, it looks at lessons that can be learned from this crisis in areas that were topical before the outbreak and are likely to be even more so after it. These include first the need to steer digital transformation so as to minimize negative impacts on jobs and sectors while critically reflecting on their ‘essentiality’ and second, at a time in history when data-intensive sectors are gaining momentum, the need for a concerted policy action to ensure good governance of health data.

Keywords: Digital transformation, essential services, GVC trade, data governance

JEL Classification: O140, O330, O380, J31