017 January 2022

The key OECD policy actions in response to the coronavirus (covid -19)

The covid-19 crisis poses unprecedented challenges for individuals, households and businesses. The top priority is to contain the pandemic and protect people. However, disruption of supply chains, containment measures limiting economic and social interactions, and falling demand are putting people’s jobs and livelihoods at risk. An immediate employment and social policy response is needed. It is essential to reduce workers’ exposure to covid-19 in the workplace and ensure that sick and quarantined workers have financial support. Working parents need support to cover unforeseen childcare needs, as schools are closed, and older relatives are particularly vulnerable. Short-term work schemes can help protect jobs and provide relief to struggling businesses, as seen in the last financial and economic crisis. Workers who have lost their jobs and income, including those in atypical or non-standard forms of employment, need financial support. As companies suffer from a sharp drop in demand, rapid financial support through grants or loans can help reduce liquidity gaps. Recently, many affected countries have introduced or announced bold measures, often focused on supporting the most vulnerable who bear a disproportionate share of the burden.