Since COVID-19 outbreak in Pakistan, over half of the working class has either suffered from a pay cut or has lost their jobs or both. Those who have not, are suffering from the fear of losing their job in near future.
According to a Dun & Bradstreet (D&B) Pakistan and Gallup Pakistan joint report on ‘Impact of Covid-19 on Consumers in Pakistan’, “54% respondents have either faced salary cuts or have been laid off by their employers in an attempt to reduce operational expenses.”
For this study views of 1,291 residents were incorporated through a telephonic survey undertaken from 4th June to 16th June 2020. The report revealed that millions of people in Pakistan lost their jobs as the businesses were not permitted to conduct operations during the lockdown. Some of the workers were laid off, and a few or given paid or unpaid leaves. This led to panic and anxiety in the working class. 18% of the respondents lost their jobs amidst the pandemic.
It was also observed that it was the low-income workers who lost their jobs the most. 59% of the respondents had the fear that they would lose their jobs amidst the pandemic.
Because of this fear of losing jobs, consumers have shifted their spending to just essential items from the non-essential items. 33% respondents said there was an increase in grocery spending, 32% said that there was an increase in household cleaning items while 32% said there was an increase in medical expenditure. 39% of the respondents claimed to have limited apparel and footwear expenditure.