The Economical and Financial Impact of COVID-19 Epidemic on Migrant Labor Force

Abstract

The objective of this study is to investigate the economic and financial effects of COVID-19 epidemic on migrant labor force. Literature review is the research design of this study. It is possible to achieve economic growth in the short term with some productivity-enhancing measures. However, what matters is the long-term economic growth. This is because, as the source of long-term economic growth and technological innovations, skilled labor force is more concrete. Therefore, for long-term economic growth, supply of skilled workforce is an indispensable precondition. Results are analyzed by comparing different resources, evaluating the literature and taking advantage of International Labor Organization (ILO) and Organization for Economic Co-operating and Development (OECD) statistics. According to study results, COVID-19 poses an unprecedented negative impact on working conditions of migrant work force. Migrant workers are among the most vulnerable in the global labor force affected by the COVID-19 epidemic. But, COVID-19 lock downs will particularly have the highest negative impact on low paid and low skilled (unskilled) migrant work force. Unskilled migrant workers are often excluded from national COVID-19 policy responses in hosting countries, such as wage subsidies, unemployment benefits or social security and social protection measures. Also, access to COVID-19 testing or medical treatment might not be available to unskilled migrant workers. Concerning conclusion and recommendations, migrant workers, should be integrated into risk pooling mechanisms to guarantee social insurance and universality of coverage and solidarity in financing. Health care related benefits can also assist to protect both migrant workers and their host countries.

Keywords: Finance, Economy, COVID-19, Labor Force, Immigration

JEL Classification: G010, I15, I320