Coronavirus threatens 195m jobs worldwide

By Jeph Ajobaju, Chief Copy Editor

Lockdowns forced by the coronavirus pandemic may wipe out 195 million full time jobs alone worldwide by the second quarter of 2020, with the Arab states predicted to be the hardest hit region with a decline of five million workers.

A total 81 per cent of the global workforce of 3.3 billion people, full and part time, have had their workplace fully or partly closed, according to the International Labour Organisation (ILO).

Restrictions on daily life have led to the closure of many companies and the laying off of staff – either permanently or temporarily.

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The ILO, an agency of the United Nations, has been looking at the global impact with a series of charts.

Their work shows the global scale of the impact of the coronavirus outbreak.

“Workers and businesses are facing catastrophe, in both developed and developing economies,” said ILO Director General, Guy Ryder.

“We have to move fast, decisively, and together. The right, urgent, measures, could make the difference between survival and collapse.”

Global effect on employment

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The ILO says in countries with workplace restrictions, required workplace closures rose from 20 per cent in February to 50 per cent in April, and recommended closures from 20 per cent to 80 per cent.

The outbreak is expected to wipe out 6.7 per cent of working hours across the world during the second quarter of 2020.

That is the equivalent of 195 million full-time workers losing their jobs.

The worst-hit region is predicted to be the Arab states, with an 8.1 per cent decline in working hours (five million full-time workers).

It is “the most severe crisis” since World War Two, the ILO says.

Going by its calculation, the eventual increase in global unemployment during the course of 2020 will depend largely on two factors:

How quickly the world economy recovers in the second half of the year.
How effectively policy measures will boost the demand for labour.

The BBC adds that there is a high risk that the end-of-year worldwide unemployment figure will be much higher than an initial ILO projection of 25 million people.

Decline in working hours

Data compiled by ILO shows that 6.7 per cent of the global workforce – around 195 million people – are working fewer hours; full time workers assuming a 48-hour week

Asia Pacific – 125 million
Americas – 24 million

Africa – 19 million
Europe – 12 million

Central Asia – 8 million
Arab States – 5 million

Accommodation services, manufacturing worst hit

Different sectors of the economy have been hit in different ways by the sudden downturn in work.

Not surprisingly, with travel at a minimum and social lives put on hold, the accommodation and food services industries are among those suffering most, along with manufacturing, wholesale and retail, and real estate and business.

Together, they account for nearly 38 per cent of the global workforce, with 1.25 billion people employed in these industries around the world.

Most high-risk workers in Americas, Europe

The percentage of people around the world in high-risk jobs varies considerably.

A total of 43.2 per cent of people in the Americas and 42.1 per cent in Europe and Central Asia work in high-risk sectors.

These regions have far fewer informal workers, who make up the majority of the workforce in Africa, the Arab states, and Asia and the Pacific.

While these workers play a crucial role in the economy, especially in countries like India, Nigeria, and Brazil, they miss out on things like social protection, that other permanent workers have, the BBC explains.

Workers at risk by region

As compiled by ILO, the share of employment in high-risk sectors is as follows