As claimed by the International Labour Organization (ILO), the damage to labor markets from COVID-19 reveals worse than expected results, which also considers a much slower recovery at the end of this year.
The ILO announced that global working hour losses this year have been “considerably larger” than earlier estimated. In the second quarter of this year, working hours were 17% lesser than the end of 2019, comparable to approximately 500 million jobs. That’s an increase from 400 million forecasted in June.
The firm also predicts that labor income losses worldwide. This is excluding the offset from government assistance programs, which amounted to $3.5 trillion so far.
While the situation will recover in the second half, the possibility has also worsened considerably since June. The fourth quarter’s destruction will be equivalent to 245 million jobs in a baseline scenario, up from 140 million. Under a pessimistic outcome, the fallout could amount to the equivalent of more than 500 million.
The changes somewhat exhibit the increase in global infection rates, suggesting a more meaningful economic impact in the second half than the ILO previously assumed.
The Geneva-based organization also said there’d been more extensive damage to jobs in developing economies, where there’s less possibility for working from home and informal work.
Being concerned for the long term, the ILO said the drop in employment has led to a rise in inactivity. That could leave many people cut off from the labor market, sluggish job recovery, and increase inequality.