Coronavirus crisis could lead to 25m job losses worldwide- ILO
An initial assessment of the impact of COVID-19 on the global workforce by the International Labour Organization said the effects could lead to almost 25m job losses.
The ILO recommended an internationally coordinated policy response, as happened in the global financial crisis of 2008/9, to try and make the impact on global unemployment significantly lower.
These measures include extending social protection, supporting employment retention (i.e. short-time work, paid leave, other subsidies), and financial and tax relief, including for micro, small and medium-sized enterprises.
In addition, the note from the ILO proposes fiscal and monetary policy measures, and lending and financial support for specific economic sectors.
The ILO estimates that in the most positive of scenarios there will be around 5.3m job losses whereas in the worst of scenarios there could be up to 24.7m job losses.
Underemployment is also expected to increase on a large scale, as the economic consequences of the virus outbreak translate into reductions in working hours and wages.
Working poverty is expected to increase significantly too, as “the strain on incomes resulting from the decline in economic activity will devastate workers close to or below the poverty line”.
The ILO estimates that between 8.8 and 35m additional people will be in working poverty worldwide, compared to the original estimate for 2020 (which projected a decline of 14m worldwide).
“This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people,” said ILO Director-General Guy Ryder.
“In 2008, the world presented a united front to address the consequences of the global financial crisis, and the worst was averted. We need that kind of leadership and resolve now,” he added.