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.
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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.
