Dynamics of employment and unemployment during Covid-19 in Cotonou

Abstract

The Covid-19 disrupted economic activities worldwide, significantly impacting labor markets. This research aims to analyze the dynamics of employment and unemployment during Covid-19 in Cotonou, using data from the biographical survey of the Rise Benin project. The survey was conducted on a sample of 1172 individuals in Cotonou. Cox regression analysis was used to analyze the factors influencing employment and unemployment dynamics during the pandemic. Descriptive results reveal an inverse relationship between employment and unemployment during the Covid-19 pandemic, with employment levels struggling to cover the unemployment gap in an economy dominated by the non-formal sector and service activities. Econometric analyses identify gender, education level, marital status, sector of activity, socio-professional category and age as the main determinants influencing the duration of employment and unemployment. Women were more affected by unemployment and remained job less for longer compared to men, particularly in the service sector. Being female, single, working in the service sector and being under 30 years old increase the likelihood of unemployed during the health crisis. Post-pandemic recovery measures struggled to cushion the shock, as they predominantly focused on formally registered businesses rather than households. The Covid-19 pandemic highlighted the vulnerability of Benin’s non-formal sector.