Govt discusses aid package for unemployed

The Lao government is discussing practical measures to aid the many Lao workers who are jobless and facing a loss of income due to the COVID-19 pandemic.
According to a government report tabled at a Prime Minister and Deputy Prime Minister Meeting recently, a task force has been asked to improve its proposed measures to aid workers, in particular for those registered with the social welfare system.
Details of the revised aid measures for the Lao labourers would be finalised and approved shortly, according to the report.
Earlier, the Lao National Economic Research Institute urged the government to speed up efforts to provide aid for the workers. This state intervention is necessary as the COVID-19 pandemic has forced businesses to suspend their operations, resulting in rising unemployment and income losses.
According to the institute, members of the national social welfare scheme should be the first group of workers given state aid as they have made some contribution to the scheme’s fund.
However, the institute urged the government to step in and allocate state money into the fund, so it was sufficiently resourced to aid labourers under the scheme, adding that the current social welfare fund was still small.
The institute also recommended the government assist labourers who are not registered under the social welfare scheme, including the approximately 100,000 who have returned from Thailand during the pandemic. On top of that, the government should encourage unemployed workers to engage in agricultural activities so that they can have access to basic food security. Laos has well-established traditions in agriculture with the majority of the population being farmers.
In addition to state aid, the National Economic Research Institute urged the business sector, in particular landlords and apartment owners, to reduce rental fees for tenants as part of measures to minimise the impact of COVID-19 on those out of work.
The institute said the government should strengthen the capacity of the social welfare system over the long run, so it was in a better position to protect members in case of future crises.
Additionally, the government should train the Lao workforce with essential skills to apply in modern industry. At present, the majority of local employees were low skilled, according to the institute.
According to data from the Ministry of Labour and Social Welfare, Laos has to import foreign personnel for mega investment projects as the country is unable to provide workers with essential skills.
The government is now improving vocational skills so enough skilled workers can meet the demand of growing investment and economic growth.

By Ekaphone Phouthonesy
(Latest Update May 5, 2020)