DHAKA, Sept 23, 2020 (BSS) – The devastating losses in working hours caused by the COVID-19 pandemic have brought a “massive” drop in labour income for workers around the world, International Labour Organization (ILO) assessment said.
A new ILO analysis of labour market impact of COVID-19 revealed a “massive” drop in labour income and a fiscal stimulus gap that threatens to increase inequality between richer and poorer countries through its latest assessment of the effects of the pandemic on the world of work.
According to a message received here today, the global labour income is estimated to have declined by 10.7 percent, or US$ 3.5 trillion, in the first three quarters of 2020, compared with the same period in 2019. This figure excludes income support provided through government measures.
The biggest drop was in lower-middle income countries, where the labour income losses reached 15.1 percent, with the Americas the hardest hit region at 12.1 percent, it said.
The ILO Monitor: COVID-19 and the world of work. Sixth edition, said that the global working hour losses in the first nine months of 2020 have been “considerably larger” than estimated in the previous edition of the Monitor (issued on 30 June).
One reason for the estimated increases in working-hour losses is that workers in developing and emerging economies, especially those in informal employment, have been much more affected than by past crises, the monitor said.
It also noted that the drop in employment is more attributable to inactivity than to unemployment, with important policy implications.
While many stringent workplace closures have been relaxed, there are significant variations between regions. 94 per cent of workers are still in countries with some sort of workplace restrictions, and 32 percent are in countries with closures for all but essential workplaces, it said.
In order for developing countries to reach the same ratio of stimulus to working hours lost as in high-income countries, they would need to inject a further US$982 billion (US$45 billion in low-income countries and US$937 billion in lower-middle income countries). The stimulus gap for low income countries amounts to less than 1 percent of the total value of the fiscal stimulus packages announced by high-income countries.
“Just as we need to redouble our efforts to beat the virus, so we need to act urgently and at scale to overcome its economic, social and employment impacts. That includes sustaining support for jobs, businesses and incomes,” said ILO Director-General Guy Ryder.
“As the United Nations General Assembly gathers in New York, there is pressing need for the international community to set out a global strategy for recovery through dialogue, cooperation and solidarity. No group, country or region can beat this crisis alone,” he concluded.