In January 2020, the International Labor Organization (ILO) announced in its report that around half a billion people around the world work fewer hours of paid work than they would like or do not have enough access to paid work. The report also reported an increase in the number of unemployed by almost 2.5 million in 2020. This is the consequence, according to the ILO, of a slowdown in economic growth and that the job market is incapable to satisfy all newcomers.
Guy Ryder, ILO Director-General, said: “The persistence and magnitude of exclusion and inequality in the workplace are preventing them from finding decent work and accessing a better future. This is an extremely worrying finding which has serious and worrying repercussions on social cohesion. “
The ILO also predicted an increase in working poverty in 2020-21, in developing countries, which would prevent the eradication of poverty worldwide by 2030. For the ILO, inequalities according to genders, generations and regions will mark the job market.
Working poverty is defined as earnings below $ 3.20 a day in terms of purchasing power parity.
However, if the figures published by the ILO in January 2020 were alarming given the mismatch between supply and employment, the ILO had not seen the arrival of the COVID19 pandemic wave and its impact on economic systems around the world.
In fact, the ILO believes in its latest press releases after lockdowns in several countries that the world of work is deeply affected by the global coronavirus pandemic. Besides, beyond the problems that affect public health systems, the lifestyle and purchasing power of millions of people around the world will bear the brunt of the negative impacts of the coronavirus on economies and societies.
Initial ILO estimates point to a significant increase in unemployment and underemployment. Taking into account the impact of COVID-19 on global GDP growth, the ILO estimates that global unemployment will range from 5.3 million (“optimistic” scenario) to 24.7 million (“pessimistic” scenario). The median scenario expects around 13 million (or 7.4 million in high-income countries).
However, the report of the Federal Department of Labour on Friday, May 08, 2020, reported nearly 33 million unemployed in the United States alone.
The global financial crisis of 2008-09 had increased unemployment by 22 million.
In fact, the majority of economic activities have been affected. Recent data shows that the total value added of industrial enterprises fell by 13.5% in China for the first two months of 2020, and regional and global supply chains have been destabilized.
The services activities, tourism, travel, and retail sectors were particularly weakened. According to the World Travel and Tourism Council (WTTC), a drop in international arrivals is estimated to be around 25% in 2020, which would have a profound impact on millions of jobs.
