With certain sectors haemorrhaging jobs while others can’t find enough qualified workers due to the economic upheaval unleashed by the coronavirus pandemic, the IMF on Wednesday urged Europe states to step up training programmes.
“The Covid-19 pandemic could result in a sizable reallocation of labour, especially among the low-skilled and young workers, as they are disproportionately employed in the sectors hardest hit by the pandemic,” the International Monetary Fund said.
The tourism sector, especially in southern Europe, has been hard hit by coronavirus lockdowns and has shed jobs by the tens of thousands.
Meanwhile, IT companies seen their businesses boom as locked down consumers shifted further to buying goods online, and can’t recruit enough trained workers.
The IMF said in a report focusing on Europe that training assistance should be directed at the most vulnerable workers and those having the least qualifications.
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It should also be directed at smaller companies that traditionally have less resources to dedicate to training, the IMF added.
Incentives to companies could also help them to take the risk of employing newly qualified help.
Meanwhile, aid directed to workers, like cushioning a loss of wages, could help people take the risk of jumping into a new profession.
Alfred Kammer, the head of the IMF’s European department, told a news conference it is important that countries intensify their efforts as “automation will continue and accelerate and it will add pressure on the labour market.”