Page 66 - IJPS-11-5

International Journal of
Population Studies Atypical workers and COVID-19

increase or decrease of the temporary labor force at the workers while other firms hired more temporary workers
firm level. This approach allows us to investigate the factors in the same sector.
determining the increase/decrease in the temporary
labor force level by sector. Estimation results when the 3.3. The impact of COVID-19 on atypical jobs by firm
dependent variable is “Firms that increased temporary region
workers since the outbreak of COVID-19” confirmed The regional analysis in our study (Tables 5 and 6) sheds
the results highlighted previously (estimation by firm light on the distinct impact of COVID-19 on atypical
size). As for the variations in the temporary labor force employment across different regions. The results reveal
levels by sector, firms in the hotel and restaurants, retail, that MENA countries experienced a significant increase
IT, transport, machinery, and equipment sectors reduce in temporary employment during the pandemic. In
the probability of increasing their temporary workforce particular, firms in Morocco, Jordan, and Lebanon
during COVID-19. However, this is not the case for firms reported an increase in their temporary workforce, which
operating in the construction sector, which is the only can be attributed to the labor market regulations that allow
sector that has seen a significant increase in the level of the for more flexibility in employment contracts. This increase
temporary workforce (Table 4). suggests that these countries may have better adapted their
labor regulations to the needs of the current crisis, enabling
Table 4 presents the estimates of a dynamic logit model
when the dependent variable is “Firms that decreased firms to hire temporary workers to meet fluctuations in
demand.
the number of temporary workers since the outbreak of
COVID-19.” Our empirical results support the evidence of In contrast, our study found that firms located in Africa
a significant impact of the barriers experienced by firms and Europe experienced a decrease in their temporary
regarding labor market regulations and maintaining their workforce during COVID-19. This result could be due
temporary workforce during the COVID-19 pandemic. The to the stricter labor regulations in these regions, which
variable that captures the level of obstacles related to labor provide fewer opportunities for firms to hire temporary
market regulations is positively and significantly associated workers; however, this could also result from reduced
with the probability that the firm will reduce its number of overall economic activity and demand for labor during the
temporary workers. Firms that reduced their temporary pandemic. Regardless, it is essential to address the unique
labor force during the COVID-19 pandemic operated in labor market challenges faced by firms in different regions
the machinery and equipment, electronics, and fabricated and to tailor policy measures to support employment
metal product sectors. Results for the construction sector according to the specific needs of these regions (Table 7).
confirm the results found in Table 3 concerning firms Therefore, our study highlights the importance of
that increased their temporary workforce. Firms in the taking a regional approach to understand the impact of the
construction sector decreased the probability of reducing pandemic on atypical employment. The findings suggest
their temporary workforce. that MENA countries have fared better in maintaining
Some sectors identified as sectors that experienced a temporary jobs, which could provide important insights
reduction in the temporary labor force were also found for policy measures in other regions. Governments should
to be sectors where firms did not experience a reduction consider streamlining labor market regulations to allow for
in the temporary labor force. These include hotels and more flexibility in employment contracts during times of
restaurants, retail, IT, and transport. This is a striking result, crisis and invest in education and training programs that
as a firm operating in one of these sectors was expected cater to the needs of the labor market in different regions.
to increase the probability of reducing its temporary labor This approach could help bridge the skill mismatch gap,
force. This result can be explained by our two dependent provide tailored support for firms in different sectors and
variables being constructed from a multinomial variable, regions, and promote a more resilient labor market in the
“Since the onset of COVID-19, has the number of temporary face of future crises.
workers increased, remained the same, or decreased?” This Our study also analyzed the factors that affect the
variable takes three modalities, “increased,” “remained likelihood of firms increasing or decreasing their temporary
the same,” or “decreased.” Our study focuses on firms workforce during the COVID-19 pandemic. Our estimation
that have experienced a change in their temporary showed that various factors are important in firms’
workforce “increased” or “decreased.” Each firm in our decision-making process. Labor market regulations were
database answers this question. Therefore, a proportion found to have a significant effect on the level of temporary
of firms operating in a particular sector, such as hotels employment, suggesting that regulatory frameworks need
and restaurants, may have experienced fewer temporary to be streamlined to allow for greater flexibility while

Volume 11 Issue 5 (2025) 60 https://doi.org/10.36922/ijps.3575