Introduction
The COVID-19 pandemic has affected all countries worldwide in many different ways. From the healthcare system to business, professionals in all life spheres have to change the usual working models, procedures, and tools to adjust to the new conditions. The shutdown policies adopted in many countries to stop the spread of the virus caused a significant rise in online services, which affected the retail sector. It also increased the unemployment level among the employees unprepared for e-commerce, new tasks, and the working-from-home model. Although many specialists claim it goes against the fair market rules, the government should support the retail sector during the pandemic.
Governmental Support of the Retail Sector During the COVID-19 Pandemic
First of all, governmental support may have various direct and indirect forms. The most obvious one is the additional expenditure for the retail sector support and employees’ insurance. Experts have mixed attitudes towards such intervention in the market. According to Saraireh (2020), who studied the impact of governmental spending on unemployment in Jordan in the period from 1990 to 2019, the short-run expenditures might be useful for unemployment reduction. However, for the long-term effect on the unemployment rate, the government should spend on social and educational needs (Saraireh, 2020). In brief, governmental expenditures might be useful, but only for a short limited period.
Another important observation is that the government should clearly estimate the unemployment rate to assess the situation and necessary expenditures accurately. Angell et al. (2020) suggest using a scalable cloud solution that would help collect, register, and evaluate all the unemployment assistance claims and create a database of those in need of governmental support. While it is not the ultimate solution, programs like the one described in their study might be helpful for understanding and assessing the real state of unemployment in the sector and the urgency level.
Finally, the government may support people by launching various social and educational programs aimed at reducing the unemployment rate. One of the reasons for unemployment is a lack of relevant skills and qualifications, such as the ones for working in e-commerce. Moreover, new technologies and innovations are launched daily, requiring experts with new skills. Therefore, even among qualified candidates, many employers seek workers who are ready to learn more, constantly upgrade their knowledge and skills, and are not afraid to master new professions. The specialists from the leading audit and consulting company PricewaterhouseCoopers (PwC) are sure that companies should be flexible to adapt to the changing conditions of the modern world (Sheppard & Burrowes, 2021). Employers should not be afraid to go digital and provide opportunities for their employees to upskill which is vital for their personal and corporate development (Sheppard & Burrowes, 2021; PricewaterhouseCoopers). However, it is not an easy feat for many firms, and that is where the government can help by launching educational programs for those wishing to upskill.
Conclusion
To conclude, the government can help retail firms to overcome the COVID-19 crisis. However, it should choose the right way to do so and ensure everyone has a fair chance to use the provided opportunities. Additional financial expenditures might be useful, but experts have mixed attitudes towards them and warn that they may have a positive impact only in the short run. The alternative way to support the retail sector firms and employees is to motivate them to go digital and provide opportunities to upskill. This help may be given in the form of educational programs.
References
Angell, M., Gold, S., Howison, M., Kidd, V., Molitor, D., Burns, C., Johnson, C., Kahn, M., Venzke, S., Deneault, S., Doweiko, D., Dziembowski, S., Kumar, B., O’Donell, P., Patel, C., Reidl., A., Tardiff, B., Hastings, J., Jensen, S., …Sarathy, R. (2021). Delivering unemployment assistance in times of crisis. Digital Government: Research and Practice, 2(1), 1–11. Web.
PricewaterhouseCoopers (PwC). (n.d.). Upskilling. Web.
Saraireh, S. (2020). The impact of government expenditures on unemployment: A case of Jordan. Asian Journal of Economic Modelling, 8(3), 189-203. Web.
Sheppard, B., & Burrowes, K. (2021). Sustaining COVID-era urgency for the long run. PricewaterhouseCoopers (PwC). Web.