The Vulnerability of Jobs to Mobility Restrictions: Malaysia's Experience during the COVID-19 Pandemic

Abstract:Using the mobility restrictions implemented by Malaysia during the COVID-19 pandemic as a case study, this paper relies on detailed data on employment patterns and on the possibility to work from home and without physical proximity to estimate the extent and distribution of jobs most vulnerable to mobility restrictions. It finds that about 64.5 per cent of jobs in Malaysia cannot be performed from home, after adjusting for Internet access, while about 50.9 per cent of jobs require high levels of physical proximity. These are the jobs that are most vulnerable to strict mobility restrictions, such as those imposed during the pandemic. Workers most at risk are primarily those with relatively low education, low level of income and advanced or very young age. Jobs in less developed regions of Malaysia are also particularly vulnerable. Against this backdrop, the paper argues that Malaysia's experience during the COVID-19 pandemic provides some vital lessons in supporting those who are most vulnerable to job losses during mobility restrictions. These lessons include improving the targeting of cash transfers, scaling up wage subsidies in supporting worker retention and hiring and leveraging upskilling/reskilling initiatives with a focus on non-routine cognitive analytical and interpersonal skills.