CAPMAS: 73.5% of Employees Observe Drop in Income Due to Coronavirus

The Central Agency for Public Mobilization and Statistics (CAPMAS) showed that 73.5% of the inpiduals working in Egypt have observed a drop in income since the emergence of the coronavirus (COVID-19).

The report indicated that more than half of the employed persons work fewer hours and working days, and 26.2% of the inpiduals became unemployed, and 18.1% work intermittently. Also, up to 69.6% of all inpiduals' working status changed  due to the coronavirus

The study pointed out that about a quarter of inpiduals have had stable income since the emergence of the virus, while the majority of inpiduals, 73.5%, reported less income, and less than 1% reported increased income.

Analysis showed that the main cause for the drop in income was due to precautionary measures, followed by unemployment, and a decrease in demand for particular activities.

On the impact of the coronavirus on the consumption pattern of the family, food commodities such as meat, birds, fish, and fruit have observed a drop in consumption, resulting from the decline of the household income.

There are some non-food commodities such as clothes, school expenses, private lessons, and transportation expenses observed a decline due to reasons related to precautionary measures such as: closing schools, restaurants, cafes and curfew hours to confront the virus.

The study showed that household consumption of clothing, school expenses, and private lessons  in addition to transportation expenses declined at rates of 27.2%, 30.8%, 33.5%, and 33.2%, respectively.

Food commodities such as rice, cooking oil, legumes consumption have also during the pandemic. Other commodities, such as other medical tools such as gloves and masks have also observed an increase in consumption, in addition to detergents, disinfectants and internet usage.

The report indicated that 46.5% of households reported that they expect the level of family income to remain stable during the next three months, and this percentage rose to 51.5% in urban areas, compared to 42.4% in the countryside.

About 45.3% of households consider that precautionary measures are the primary reason for adjusting income (increase / decrease), while others think that the economic measures undertaken by the government caused the drop in income, pointing out that 1% of income was deducted from wages and pensions to tackle the pandemic.

The report pointed out that in an attempt to cover the needs of the family in the event of a lack of income, most families reduce weekly consumption of meat, chicken, and fish, followed by reliance on less expensive alternatives such as legumes, canned commodities.

Also most households depend on savings and reduction of spending on non-food commodities, while other sell some assets, and aid from friends and relatives, mostly in the countryside.