The ILO warns of the pandemic’s lasting damage to the global labor market
New ILO research warns that the rate of job creation is unlikely to make up for unemployment before 2023, and the global labor market is facing imbalances and imbalances in the recovery from the coronavirus pandemic.
The International Labor Organization predicts that as companies reopen after the lockdown to control the spread of Covid-19, approximately 100 million jobs will be created globally this year. However, the United Nations agency said that compared with pre-pandemic levels, 75 million jobs will be missing this year and will be reduced to 23 million by 2022. In addition, there will be jobs that could have been created without a pandemic. .
ILO Director-General Guy Leide said: “Although signs of economic recovery are emerging with the intensification of the vaccine campaign, the recovery may be uneven and fragile.”
The International Labor Organization warns that this will make global employment growth “too weak” to provide adequate opportunities for young people entering the labor market, thereby reducing their long-term employment opportunities, wages and prospects for on-the-job skills development.
The International Labor Organization stated that although many governments have taken unprecedented measures to keep jobs, the employment situation in all countries has deteriorated sharply, which has exacerbated existing inequalities and may have long-term “scarred” effects on workers and companies. .
According to ILO data, by 2022, 205 million people will be unemployed globally, which is much higher than the 187 million before the 2019 pandemic. This is equivalent to an unemployment rate of 5.7%, the highest level since 2013, except for last year. During the pandemic.
The International Labor Organization stated that “thanks to unprecedented policy support and the privilege of obtaining vaccines,” the unemployment rate in high-income countries will drop to 5% in 2022. This will make it slightly higher than 4.8% before the pandemic and lower than 6.8% in 2020.
In contrast, the unemployment rate in low-income countries is expected to remain basically unchanged from the 2020 level at 5.2% by 2022, subject to their greater restrictions on fiscal stimulus measures. Many emerging and developing countries are burdened with high debts and deficits, and the slower acquisition of the Covid-19 vaccine is expected to delay the reopening of their economies.
“This recovery of inequality may further exacerbate inequality in the world of work between and within countries,” Ryder said. “Due to unequal fiscal firepower and unequal access to vaccines, countries with higher incomes will emerge from the crisis faster.”
The International Labor Organization said that North America will experience the strongest labor market recovery due to the rapid vaccination campaign and generous fiscal stimulus plan.
In contrast, in Latin America and the Caribbean, the employment recovery is expected to be “slow” due to the disappearance of many companies and the limited creation of new companies. The International Labour Organization stated that lack of job opportunities will lead to increased poverty and inequality, especially for informal workers who lack social protection.
This trend is already happening in Africa. The pandemic has reversed some of the economic progress on the continent by pushing up the proportion of workers living in extreme poverty.