Ammar Adenwala

Limiting Bahraini Unemployment Amid COVID-19: The Bahraini Wage Subsidy

Limiting Bahraini Unemployment Amid COVID-19: The Bahraini Wage Subsidy

In the face of the global coronavirus pandemic, supply and demand shocks to the economy have caused businesses in Bahrain to suffer from a significant reduction in economic activity, which has negatively impacted their individual levels of productivity. This has had consequences for the ability of said businesses to retain their current levels of employment during these challenging times. At the end of June, 2020 the Bahraini government decided to extend the financial stimulus package for the private sector, and subsidize 50% of wages for insured Bahraini employees in the most adversely affected industries for 3 additional months, from July to September of 2020.