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Jurnal Ekonomi Malaysia

56 (2) 2022 65 – 75

The Economic Impact of Workforce Disruptions on The Output During COVID-19 Pandemic

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor
MALAYSIA.

heizlynamyneina@gmail.com

EIS-UPMCS Centre for Future Labour Market Studies
Menara PERKESO Putrajaya
No. 6, Persiaran Perdana, Presint 2,
62100 Putrajaya
MALAYSIA.

mysaari@gmail.com

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor
MALAYSIA.

daaniyall@upm.edu.my

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor
MALAYSIA.

uchakrin@gmail.com

Abstract

This paper examines the economic impact of workforce disruptions on the output, final demand and Gross Domestic Product by applying an extended input-output (I-O) model. In the extended I-O model, workforce disruptions are measured and modelled in two perspectives: loss of employment (LOE) and inter-industry disruptions that limit the number of workers in the production. Results show that the inter-industry disruption / supply shock is likely to give a tremendous impact compared to the LOE. Moreover, the level of economic impact is also influenced by the level of economic integration among sectors. In this regard, the more integrated a sector with the high-risk sectors, the more impacted the sector is. In conclusion, the results suggest the need for balancing the economic and health risks to ensure that the welfare of people is protected.

 

Keywords

Covid-19; input-output model.; loss of employment; workforce disruptions

JEL Codes

C67, D57, J63
http://dx.doi.org/10.17576/JEM-2022-5602-5
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Bibliography

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Hamzah, H. A., Saari, M. Y., Abd Rahman, M. D., & Utit, C. (2022). The Economic Impact of Workforce Disruptions on The Output During COVID-19 Pandemic. Jurnal Ekonomi Malaysia, 56(2), 65–75. http://dx.doi.org/10.17576/JEM-2022-5602-5

@article{,
  title={The Economic Impact of Workforce Disruptions on The Output During COVID-19 Pandemic},
  author={Hamzah, Heizlyn Amyneina and Saari, Mohd Yusof and Abd Rahman, Muhammad Daaniyall and Utit, Chakrin},
  journal={Jurnal Ekonomi Malaysia},
  volume={56},
  number={2},
  pages={65—75},
 

year={2022},
}

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