Workers’ adaptation strategies in a highly informal labour market during the COVID-19 pandemic. The case of Metropolitan Lima
Workers’ adaptation strategies in a highly informal labour market during the COVID-19 pandemic. The case of Metropolitan Lima

Author(s): Agnieszka Olter-Castillo, Jose Enrique Castillo Sanchez
Subject(s): Environmental Geography, Human Ecology, Environmental interactions
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: adaptation strategies; labour market; informal employment; COVID-19 pandemic
Summary/Abstract: The COVID-19 pandemic has had a profound impact on labour markets worldwide. Peru emerged as one of the most severely affected countries globally, with its capital, Lima, experiencing even more substantial repercussions. In this study, we analyse the adaptation strategies of households and workers in Metropolitan Lima, focusing on those engaged in informal work before and during the COVID-19. We discovered that households in Metropolitan Lima primarily coped with income loss by reducing food consumption and depleting their savings. The COVID-19 pandemic not only led to rise in unemployment but also spurred an increase in inactivity among the working-age population, with no significant recovery noted by 2021. Workers began to engage in lower-skilled occupations within smaller firms. Ultimately, informal employment surged during the pandemic, driven mainly by an uptick in the number of workers participating in informal firms in low-skilled occupations.

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