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Article

15 Feb 2021

Author:
Rejimon Kuttapan, Equaltimes.org

South Asia: COVID-19 and economic fallout contribute to massive downturn in labour migration to the Gulf, remittances sharply dropping

"South Asia’s migrant workers are facing a jobs crisis both at home and abroad", 15 February 2021

Before the coronavirus there were an estimated 23 million migrant workers in the Gulf region. The twin shock of the coronavirus pandemic and falling oil prices led the IMF to predict that the economies of Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates (also known as the Gulf Cooperation Council, or GCC) would contract by a massive 7.1 per cent in 2020.

...For the migrant workers who have managed to stay in the countries where they live and work, the Institute for Human Rights and Business says: “Many [migrant workers] have been confined to poor living conditions in cramped dormitories, experienced job loss or non-payment of wages, been forced by employers to take unpaid leave or reduced wages, or repatriated back home with few to no alternative work options.”

But for those who were forced to return home or who have been unable to leave their home country to start a new job abroad, the situation has been mixed...

...Like many low- to middle-income countries, remittances from migrant workers play a significant role in the countries of South Asia: in India remittances are said to make up 3 per cent of GDP while in Nepal they account for 27 per cent.

It was predicted that the economic downturn triggered by the pandemic could have a massive impact on the money sent home by workers abroad, with an October 2020 report from the World Bank estimating that remittances in South Asia will fall from US$135 billion in 2020 to US$120 billion in 2021.