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Three issues make this looming crisis acknowledged by the government, and fall from by US$76 billion to US$70
particularly salient for the migrant their importance to the health service billion, with receiving households from
workers who generate remittances. demonstrated by the Home Office’s Mexico and Central America being most
decision to extend all visas of health affected. According to another study by
Migrant workers at risk workers coming up for renewal by a year. BBVA Research, remittances to Mexico
First, as the Institute for Public Policy But many more migrants are hidden could fall by 17%.
Research think tank illustrated in a and largely unsung heroes who continue
recent briefing, migrant workers tend to work in so-called semi-skilled or With the global economy slowing
to work in sectors that are particularly unskilled jobs in sectors such as food down even before coronavirus, and the
vulnerable at times of an economic manufacturing and delivery, social care pandemic affecting different parts of
downturn and have less employee and cleaning. High rates of infection the world over different timelines, long-
protections. They are also more likely to among Somali migrants in Norway, for term recovery prospects are unclear.
be self-employed. example, are partly attributable to their The particular vulnerability of poor
Second, the access migrant workers concentration in these “close-contact” countries is apparent with the World
Bank pledging US$160 billion over the
have to public funds is – with some professions where home working is not next 15 months to aid both immediate
exceptions – specifically restricted an option.
health priorities and longer term
economic recovery.

It remains unclear whether that US$160
billion is adequate and will reach
vulnerable households, particularly
given the negative impact the World
Bank and IMF’s historic structural
adjustment programmes, in which strict
spending conditions were attached to
aid, had on the healthcare systems of
many developing countries.
In contrast, remittances – often known
as aid that reaches its destination
– constitute a significant safety net
for vulnerable households. Our own
as a condition of their visas. So it’s The 2008 financial crisis research shows that remittances don’t
uncertain whether they will be able to just reach immediate household
access the already limited government The 2008 financial crash and recession members but are also distributed among
interventions to mitigate the effects of provide some indications of how this extended family and friends. They
the pandemic. For example, the South crisis in migrant work may affect also support local economies through
African government’s initiative to help remittance flows. Between 2008 and family payments to shopkeepers and
small- and medium-sized businesses 2009, remittance flows declined by 5.5% construction workers. In regions such
is only available for those with South globally. Some parts of the world saw as the Horn of Africa, where 40% of
African citizenship. even more marked declines. Transfers households are heavily dependent upon
to Latin America and the Caribbean, remittances, any disruption in flows
Third, and as a result of this, migrant most originating from the US, decreased
workers adopt a series of strategies or by 12%. Migrants remitted smaller sent by the Somali diaspora will further
tactics to cope. They often continue to amounts, more infrequently, or in exacerbate food insecurity.
work in compromised circumstances, extreme cases, stopped altogether as How richer nations respond to the current
such as in jobs with lower wages, they were laid off and faced uncertain crisis will have significant economic
poor working conditions and, in the future employment prospects. ramifications for countries dependent
current crisis, exposure to infection. on remittances. Richer nations must
They also restrict their spending – and Early predictions of the impact of
contemplate a return back home. coronavirus on remittances detail adopt inclusive economic policies which
significant declines. One study by the both protect the livelihoods of migrants
In the UK, some migrants are hyper- Inter-American Dialogue estimated and reduce the socio-economic impacts
visible NHS doctors and nurses. Their there would be a 7% decline in of the pandemic. Their jobs are linked to
labour has been somewhat belatedly remittances from the US, which will the survival of millions of others.

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