Page 74 - IJPS-11-5

International Journal of
Population Studies Atypical workers and COVID-19

permanent jobs rather than relying heavily on temporary adapt their operations quickly. By implementing these
employment (Burchardt, 2019; Kreiner & Svarer, 2022). recommendations, policymakers and businesses can
The positive correlation between firms converting create a more resilient labor market better equipped to
their production or services in response to COVID-19 handle future crises, ensuring workforce flexibility and job
and the level of temporary employment underscores the security.
importance of innovation (Nunes et al., 2023; Osuna & 5. Conclusion
García Pérez, 2022). Governments should support business
transformation by providing financial incentives, such as This paper investigated the impact of the COVID-19
tax breaks or grants, to firms that innovate and adapt their health crisis on contingent/atypical employment. For this
business models to meet new market demands. In addition, purpose, we mobilized a firm-level database of 12,193
incentivizing research and development activities will enable firms from 19 countries. A dynamic logit model was used
firms to explore new products, services, and operational as the empirical methodology.
strategies, promoting long-term growth and employment Atypical workers were among the most impacted
stability (Fasano et al., 2022; Turkson et al., 2021). segments of the population by the COVID-19 health
Given the distinct impact of COVID-19 on atypical crisis. Our empirical results showed that an inadequately
employment across different regions, adopting region- educated workforce and labor regulations were the main
specific policy measures is critical. Policymakers should factors that hindered the increase in atypical employment
streamline labor market regulations in regions with levels at the firm level during the COVID-19 pandemic.
stricter policies to allow for greater employment flexibility Results by firm size showed that small firms raised the
during crises, ensuring that firms can adapt to fluctuating probability of increasing the level of the temporary labor
labor demands. Developing region-specific education and force, as opposed to medium- and large-sized firms.
training programs that address the unique needs of local Furthermore, results by sector of activity showed that,
industries will bridge the skills gap and enhance workforce except for firms operating in the construction sector, firms
readiness (Herod et al., 2022). belonging to other sectors (hotel and restaurants, retail,
The study also highlights the need to reassess IT, transport, machinery, and equipment sectors, etc.)
government subsidies and assistance programs to support were less inclined to increase their temporary workforce.
firms during crises (Lalinsky & Pál, 2022). It is essential to However, this is not the case for firms operating in the
design targeted subsidies and financial assistance programs construction sector, which is the only sector that has seen
that specifically address firms’ needs for maintaining their a significant increase in the temporary workforce of its
workforce. These programs should focus on both temporary firms.
and permanent employment. Continuously evaluating the Furthermore, the firm’s geographical location is a
impact of government assistance programs and adjusting key determinant of the increase/decrease in the firm’s
them based on feedback from businesses and labor market temporary workforce. The firms in Africa and Europe
trends will ensure that they provide meaningful support in experienced a decline in their temporary workforce, unlike
maintaining employment levels (Liouaeddine et al., 2024). those in the MENA region, which experienced an increase
Firms should invest in comprehensive human resource in the temporary workforce during the COVID-19 crisis.
development strategies to build a more resilient workforce Finally, national or local government measures issued to
capable of navigating future crises. Implementing programs firms failed to mitigate the impact of the COVID-19 health
focusing on employee well-being and mental health crisis on the contingent worker segment. Regarding the
is crucial (Al-Jubari et al., 2022), as a supportive work empirical verification of the Schumpeterian hypothesis of
environment enhances productivity and job satisfaction. “creative destruction,” the latter is confirmed insofar as the
Developing clear career paths and opportunities for variable “has this establishment converted its production
advancement within firms will provide employees with a or services in response to COVID-19” is statistically
sense of stability and long-term growth prospects (Chen positively correlated with our two dependent variables. In
et al., 2022). other words, the adjustment policies implemented at the
Finally, firms should prepare themselves for a firm level in our sample destroyed old temporary jobs in
pandemic-like occurrence through special scenario these firms, but these adjustment measures created new
planning (Rawson & Stevens, 2023). This approach involves needs in the temporary labor force for the firms.
developing contingency plans that address potential Our study contributes to the literature on the impact
disruptions and ensuring that they have the flexibility to of the COVID-19 pandemic on atypical employment,

Volume 11 Issue 5 (2025) 68 https://doi.org/10.36922/ijps.3575