There are decades where nothing happens, and there
are weeks where decades happen. This saying could not be more apt today. The
pandemic—which has disrupted the world in profound ways—has prompted
countries to roll out significant policy changes that might otherwise have
taken years. It has also sped the arrival of technologies
and new ways of working
and learning, moving us almost overnight into a new era.
For many professionals, working from home has become easier. Yet for many
others— particularly workers in hospitality and tourism,
delivery, retail, and basic care—deep economic scars are already forming.
Among them: lost jobs, a widening skills gap, increasing inequality, and a
toll on mental health. Women, youth,
minorities, and the less skilled are disproportionately affected—and could
face the beginning of many lost years. Those
unlucky enough to start careers in a recession
may experience lower earnings for 10 to 15 years after graduation, or
longer.
This issue
of Finance & Development, produced in partnership with the
World Economic Forum, looks at the future of jobs and economic opportunity.
It explores what can be done to shape a better tomorrow—one that puts
people at the center of policy.
Reforms must focus on creating higher-quality jobs for more people in more
places, says Martin Sandbu. “Work must be central because it is where many
of the chronic and pandemic-related economic challenges intersect:
inequality, precarity, and the new informality; geographic disparity; and
technological change,” he writes.
The IMF’s Kristalina Georgieva highlights the importance
of investing in women and young people and enhancing education, training,
and re-skilling to open up opportunities. “People-focused policies can
boost productivity, especially if investments enhance the abilities of
workers in informal and low-skill job,” she argues.
Common threads run through the other articles. Heather Boushey
and Lawrence Mishel argue
for policies that strengthen worker power. Sabina Dewan and Ekkehard Ernst,
who survey the economic fallout from the pandemic in developing economies,
call for improved social protection
and social insurance, especially for gig and informal workers. Binyamin
Appelbaum
shares his point of view
on the role of economics in analyzing the inequities of distribution and
incorporating insights from other disciplines. Other contributors urge
increased health care and childcare support; better designed progressive
taxation to address income inequality; and scaled up investment in digital
access as well as green technologies that would create new jobs in the
process.
In the deepest crises are born great opportunities. This is such a moment—a
window for radical change, not to be squandered. In weeks to come, decades
can happen.