Coronavirus pandemic: UN agency warns 25 million jobs could be lost
The International Labour Organization said the world needed a coordinated response to deal with the crisis.
The coronavirus pandemic could lead to the loss of nearly 25 million jobs across the world, according to a report published by a United Nations agency. In its report titled “COVID-19 and World of work: Impacts and responses”, the International Labour Organization has said that urgent, large-scale and coordinated measures – to protect workers, stimulate the economy and employment, and support jobs and income – are needed to mitigate the damage.
The UN agency said that the pandemic could lead to income losses to the tune of $860 billion and $3.4 trillion by the end of 2020. This will translate into drastic reduction in consumption of goods and services and will adversely affect that economy.
“However, if we see an internationally coordinated policy response, as happened in the global financial crisis of 2008/9, then the impact on global unemployment could be significantly lower,” the report says.
The agency said that extending social protection to workers and supporting employment retention and tax relief for micro, small and medium-sized enterprises could help deal with the crisis.
The report also warns that people in less protected and low-paid jobs – young people, older workers, women and migrants – will be more affected by the jobs crisis, which could lead to increase in inequality.
The agency’s director Guy Ryder said that social dialogue is important for building trust in the times of crisis. “In times of crisis we have two key tools that can help mitigate the damage and restore public confidence,” he said. “Firstly, social dialogue, engaging with workers and employers and their representatives, is vital for building public trust and support for the measures that we need to overcome this crisis.”
Ryder added that international labour standards are a trusted base for policy responses. “Secondly, international labour standards provide a tried-and-trusted foundation for policy responses that focus on a recovery that is sustainable and equitable,” he said.
The coronavirus pandemic has caused immense damage to the global economy – markets have been crashing, airlines are struggling to survive amid strict travel restrictions and companies are considering layoffs and pay cuts. The entertainment industry has also taken a severe hit.
The pandemic, that originated in China, has killed 8,957 people across the world and infected more than 2 lakh people, according to an estimate by the John Hopkins University, that is tracking coronavirus cases in real time.