Coronavirus could destroy up to 25 million jobs globally: ILO

The International Labour Organization (ILO) has claimed that the economic and labour crises created by the coronavirus will destroy up to 25 million jobs around the world.

According to the new assessment of ILO, the organization warned that if the government did not act fast to shield workers from the deadly disease, it will destroy the economy worldwide.

The ILO estimated 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.

Working poverty is expected to increase significantly too, as “the strain on incomes resulting from the decline in economic activity will devastate workers close to or below the poverty line”.

ILO said, “However, if we see an internationally coordinated policy response, as happened in the global financial crisis of 2008-9, then the impact on global unemployment could be significantly lower.”

The ILO called for urgent, large-scale and coordinated measures across three pillars – protecting workers, stimulating economy and employment, and supporting jobs and income.     

According to the ILO, these measures include extending social protection, 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 also proposed that fiscal and monetary policy measures, and lending and financial support for specific economic sectors.