It would be an understatement to say that 2020 was a transformative year.
Hundreds of millions of people around the world suffered the physical and mental health consequences of COVID‑19. By the end of June 2021, more than 3.9 million lives had ended because of it. National health systems have been stretched to their limits through several waves of COVID‑19 infections.
The health pandemic led to another crisis: that of economic insecurity. Entire economies transitioned to low power mode during national and regional lockdowns, in an effort to slow the transmission of the illness. In turn, the global economy slowed to a crawl. When accounting for both the stark drop in employment and the reduction in hours worked by people who remained in the labour market, COVID‑19’s negative impact on total hours worked in spring 2020 was ten times greater than that experienced in the first few months of the 2008 global financial crisis (OECD, 2020[2]). By March 2021, hours worked were still 7% below their level in December 20191 (OECD, 2021[3]). OECD countries may not recover to pre‑pandemic employment levels before 2023, despite the projected rebound in economic activity in 2021 and 2022.
Everyone has been affected. Young adults and low-skill workers were especially hard hit by job disruptions, either in the form of reduced work hours or outright job losses (OECD, 2021[3]). Income losses were widespread. Many people who were able to keep their jobs suddenly found themselves on the “front line” of the pandemic due to their work in essential service sectors. Other workers were thrust into a future of indefinite telework, often while simultaneously caregiving for children who could no longer attend daycare or school in-person.
OECD governments responded to the unprecedented health, economic and social challenges of the pandemic with a range of bold policy measures (OECD, 2020[4]; 2020[5]; 2020[6]; ISSA, 2021[7]). Although expenditure data are still incoming across countries, it is very likely that 2020 will represent the largest expansion of OECD welfare states since the World War II recovery period – and yet people are still falling through the cracks.
It is against this backdrop of upheaval that the second wave of the OECD Risks that Matter survey went into the field in 25 countries in autumn 2020.
This report presents main findings from RTM 2020, and the results paint a stark picture. Responses to the RTM 2020 survey illustrate widespread economic disruption during the pandemic, heightened worries about health and financial security, and, in many cases, calls for greater government intervention in social insurance – even at the cost of higher taxes. The survey thus provides a strong call for bold investment in social protection, not only to ensure a full recovery for everyone, but also to address the structural gaps in access and quality of services that the crisis has once more brought to the fore.
The good news is that many countries are committing massive resources to the recovery. It is crucial that these recovery plans support the reforms needed to close gaps in social protection.
Stefano Scarpetta
Director for Employment, Labour and Social Affairs, OECD