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Uzbekistan 21/12/2020 Impact of the COVID-19 pandemic on the socio-economic situation in Uzbekistan.
Impact of the COVID-19 pandemic on the socio-economic situation in Uzbekistan.

Tashkent, Uzbekistan (UzDaily.com) -- The level of income of Uzbeks from self-employment in October exceeded the March figures by 11% (taking into account inflation). The level of wages continues to recover.

The World Bank (WB), together with the Center for Economic Research and Reform (CEIR), have summed up the results of the October round of a survey assessing the socio-economic impact of the coronavirus pandemic (COVID-19). The survey is carried out on a monthly basis as part of the Listening to Citizens of Uzbekistan (L2CU) project to assess the well-being of citizens and public opinion regarding the reforms being implemented by the country’s government.

The project "Listening to the Citizens of Uzbekistan" envisages the study of the socio-economic condition of households in all regions of the Republic of Uzbekistan through surveys among 1,500 households. Since 2018, the project has conducted 27 rounds of surveys. The last round took place on 21 October 2020.

The October survey results showed the following:

In the field of income of the population and labor activity

In April, the level of income from self-employment fell by 68% compared to March. By September, the situation had stabilized, and in October the level of income from self-employment exceeded the level of March by 11%. The level of wages also increased in October this year, slightly below the level before the pandemic.

There was a recovery in the labor market. In particular, the share of households with at least one working family member, in April of this year, decreased by more than 40 percentage points in relation to the corresponding period of 2019, and by June of this year. recovered to 33 percentage points. In October, the recovery process continued and the decline in relation to the corresponding period last year was only 5 percentage points.

The number of cases recently “lost or stopped working” peaked at 11% in April, followed by a temporary decline. In July and August, the share of “those who lost or stopped working” began to grow again, dropping to 2% in October.

Interruptions in employment, prevalent mainly among the self-employed, have decreased. So, the number of self-employed in April decreased by 67% compared to the same period last year and remained at the level of 30% until August and in October fell to 14%. The decline in self-employment was more severe in urban areas than in rural areas. In contrast to the self-employed, the employment rate among salaried workers in June reached the level of 2019, recovering somewhat faster among men than among women.

In the field of financial well-being

13% of respondents reported receiving direct assistance after a pandemic outbreak.

Receiving aid is closely linked to lower income levels, indicating that the programs have benefited vulnerable households.

In the field of migration and remittances

The share of households receiving remittances in October of this year practically did not change compared to the previous month, but remains below the indicator of 2019. In April, the share of families receiving any remittances dropped by half compared to the same period last year, recovering somewhat in May and August. Among those who received remittances, the value of the total remittances fell 67% in April compared to the same period in 2019. The fall of this indicator in October of this year was already 16% in relation to the current period of the previous year. At the same time, the data of the Central Bank of Uzbekistan show a 3% decrease in remittances, which may be due to a change in the methods of transfers in favor of the official ones as a result of a reduction in air flights due to quarantine restrictions.

At the same time, the number of households reporting the presence of family members working abroad decreased. In April and October, the share of households with members residing abroad was 3 percentage points lower than in the same periods in 2019. In the month of October of this year, among those who are still abroad, active employment fell from 90% to about 85%. From April to October, the share of families planning to migrate abroad fell to almost zero.

In the field of human well-being

Assessment of people’s satisfaction with life from April to October showed significant improvements. In particular, the percentage of people satisfied with their lives in June of this year. decreased by 1.2 percentage points compared to April and increased by 1.3 percentage points in October.

 

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