Page 72 - IJPS-11-5

International Journal of
Population Studies Atypical workers and COVID-19

Commission for Planning and the General Confederation to maintain a steady workforce and pursue innovation-
of Moroccan Enterprises in 2020 estimated that nearly driven growth strategies.
1.6 million jobs were at risk due to the lockdown, while Regarding sectoral variations in temporary labor
the national economy lost 432,000 jobs. This difference force levels, hotel, restaurant, retail, IT, transport, and
highlights the importance of government measures machinery and equipment firms were less likely to increase
implemented at the beginning of the pandemic, which their temporary workforce during COVID-19. The
helped preserve approximately 73% of at-risk jobs. pandemic has disproportionately impacted the hospitality
A survey conducted by the African Development Bank and industry, highlighting key workforce vulnerabilities such
the International Labor Organization (ILO) in 2021 on 350 as workplace safety, skill gaps, technology adoption,
formal businesses and informal micro-enterprises showed and work reorganization (Huang et al., 2021). The
that the mitigation measures helped preserve 71% of the tourism and hospitality sectors experienced substantial
jobs directly threatened by the lockdown.
losses, with projected permanent layoffs of up to 24% of
Furthermore, labor market regulations and the mismatch COVID-19-induced job losses (Foote, 2004; Huang et al.,
between the education system and firms’ labor force needs 2021). This situation has had significant spillover effects
are key factors influencing the reduction of temporary on other industries and occupations beyond tourism
labor at the firm level. In addition, as the firm’s age and (Pham et al., 2021); however, firms in the construction
the experience of its top manager increase, the likelihood sector experienced a notable increase in their temporary
of a reduction in atypical employment decreases; however, workforce levels, unlike those in other sectors.
this result is not statistically significant. Hansen (1992) Firms that reduced their temporary labor force during
and Mazzarol et al. (2010) found a positive relationship the COVID-19 pandemic were primarily in the machinery
between firm age and the adoption of innovation among and equipment, electronics, and fabricated metal products
small- and medium-sized enterprises (SMEs). They argue sectors. Conversely, the construction sector was less likely
that as SMEs mature, they develop greater absorptive and to reduce its temporary workforce. This result can be
organizational learning capabilities, enabling them to discussed in the context of the study by Pamidimukkala
implement more effective innovation-driven strategies. & Kermanshachi (2021), which examined the impact of
This accumulated experience and knowledge allows older the COVID-19 pandemic on the construction industry.
firms to adapt more readily to changing market conditions, Pamidimukkala & Kermanshachi (2021) identified several
potentially reducing the need for atypical employment as health and safety challenges faced by construction workers
they become more stable and capable of managing their during the pandemic, including a lack of safe working
workforce efficiently. This finding aligns with the resource- environments, heavy workloads, and concerns about job
based view of the firm, as proposed by Wernerfelt (1984), stability. These factors contributed to heightened anxiety
which posits that firms accumulate valuable resources and and stress among workers, necessitating the implementation
capabilities over time, contributing to their competitive of robust management strategies to ensure their well-being.
advantage. Older firms will likely have developed a The study highlighted the need to maintain a safe distance
wealth of knowledge, networks, and experience, which between workers, provide sanitizers and washing stations,
can facilitate innovation adoption as a resilience strategy. and leverage effective technologies to enhance workplace
This accumulation of resources may lead to a more stable safety and productivity. In this context, the increase in
and consistent workforce structure, with less reliance on temporary employment in the construction sector could
atypical employment forms. be linked to the industry’s response to these challenges. The
Furthermore, Jones & Coviello (2005) emphasized the need for flexibility in managing fluctuating workloads and
role of entrepreneurial orientation in driving innovation ensuring compliance with safety protocols may have led
and adaptation among small firms. They suggest that older firms to rely more on temporary workers. This approach
firms may exhibit a stronger entrepreneurial orientation allows firms to adjust their workforce size in response
and be willing to take risks and explore new opportunities. to project demands and health and safety requirements,
This orientation can encourage the firm to invest in long- providing adaptability that permanent staff structures
term strategic initiatives rather than relying on atypical might not offer. Moreover, the construction sector’s
employment, which may be seen as a more short-term reliance on temporary labor could be influenced by the
or flexible solution. Older firms with more experienced uncertainty surrounding job stability, as Pamidimukkala &
leadership tend to develop greater stability and resilience. Kermanshachi (2021) noted. Firms may prefer temporary
This may reduce the necessity for atypical employment as contracts to manage financial risks and maintain flexibility
they leverage their accumulated resources and capabilities in an unpredictable economic environment; however, this

Volume 11 Issue 5 (2025) 66 https://doi.org/10.36922/ijps.3575