The final report of the Rapid Livelihood Assessment, to understand the impact of the COVID19 crisis in the Maldives, has revealed the immediate and widespread impact on employment and livelihoods - hitting the most vulnerable the hardest, with a significant impact on Micro-, Small and Medium-sized Enterprises (MSMEs).
The assessment is commissioned by the Ministry of Economic Development, and the Government of Maldives, with support from UNDP Maldives.
The report said that the impact of the crisis on employment was immediate and widespread, with the tourism sector being the first to absorb the economic shock from the crisis.
It highlighted data for all sectors indicated that 44 percent reported redundancy/complete loss of income, 24 percent reported no pay leave, and 32 percent reported receiving partial pay.
A majority of people affected work in service areas, in lower-paying categories, or are self-employed.
The report said that groups most vulnerable to facing early employment loss include: young people, employees on probation contracts, third-party contract employees of resort establishments, casual migrant workers, the self-employed, and freelancers and community vendors.
It went on to say that impacts on MSME operations revealed disruption to businesses, supply disruptions, impacts on cost of operations, loss of sales and revenue, impact on cash flow, and employment adjustments made by MSMEs.
Interviews with MSMEs indicated that a small proportion of businesses said that they can manage cash flow for up to six months.
The reported also highlighted challenges to doing business in the new normal which included; barriers to access finance, limited access to business support services, unmet skills requirements in areas of business 3 management, slow technology uptake, limited scale of transition to green/environmentally friendly technology, and weak enforcement of laws that disadvantage MSMEs.
The Rapid Livelihood Assessment revealed that the COVID-19 crisis also showed adaptation by businesses, including opportunities for innovation: the crisis opened doors for new opportunities, especially for women, introduced new ways of doing business, and brought about shifts in behavior and consumption patterns.
