Around 25 million jobs at risk due to coronavirus pandemic

Geneva: International Labor Organization has warned that economic crisis created by COVID-19 threatens the job of around 25 million people world-wide.

An assessment report, “COVID-19 and world of work: impacts and responses”, published by ILO, has called for coordinated efforts for the protection of workers in workplace, stimulating the economy and employment, and supporting jobs and incomes.

These efforts may include 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.

ILO estimates indicate a rise in global unemployment of between 5.3 million (“low” scenario) and 24.7 million (“high” scenario) from a base level of 188 million in 2019. By comparison, the 2008-9 global financial crisis increased global unemployment by 22 million.

Guy Ryder, ILO’s Director-General stated, “This is no longer only a global health crisis, it is also a major labor market and economic crisis that is having a huge impact on people.”

Governments around the world have been focusing on stabilizing their economy via various economic stimulus. The US government promised close to $1tn of stimulus followed in the UK with a support package worth £300bn for small and large businesses.