The Changing Nature of Work: 30 signals to consider for a sustainable future

SIGNAL 2. Sectoral differences

The COVID-19 crisis has been a colossal stress test, not least for the national economies. It has impacted all sectors of the economy. Due to a globalized world economy and intertwined international trade and supply chains, even the countries that were not at the epicentre of the pandemic have experienced a significant burden through economic disruption. According to the International Labour Organization (ILO), in 2020, there was an estimated 4.8 percent drop in working hours in Q1 and a 10.7 percent drop in Q2; and for Europe and Central Asia region, there was a 3 percent drop in Q1 and a 12.9 percent drop in Q2.

The scale and depth of the impact have been different for businesses depending on the sector, ownership type, size and informality level. The most directly hit sectors included service sector activities that cannot be digitalized, non-essential construction and smaller manufacturing. The private sector, especially small and medium-sized enterprises (SMEs) with limited resources, are in a more disadvantaged position than larger organizations. The informal sector, which is prevalent in developing economies, faces even greater challenges; it operates in saturated markets with very limited profits and poor chances of survival, and are often outside the purview of common government policies and programmes.

The diverse and multifaceted impact of COVID-19 raises complex issues relating to resilience and flexibility, social protection, inequality, occupational safety measures, etc., which manifest differently in different settings. In addition to the usual drivers of change, these issues will also influence how the future of work will be shaped.

Check out the next signal, #3: Increasing awareness of the fragility of mental health.

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The Changing Nature of Work: 30 signals to consider for a sustainable future

Work helps sustain livelihoods and largely determines the quality of life. Its changing nature is at the frontier of development. This report is the result of a broad horizon scanning by six UNDP Accelerator Labs across Europe and the Commonwealth of Independent States.  They reveal 30 signals that shape the “where, who, how, and why” of the changing nature of work. From the impact of COVID-19 on the workforce to new work models and entrepreneurial ecosystems, the authors explore opportunities and threats, as well as solutions from local contexts that can be scaled up into positive answers to the challenges people around the world are facing.  Download the full report here.