Global working time loss of 17.3% in June 2020 quarter as compared to December 2019 quarter, this is equivalent to 49.5 million full-time jobs: International Labor Organization
- The ILO stated that in the first 3 quarters of this year, worldwide workers’ income declined by 10.7%
- The worst effect was seen in low-middle income countries, where workers’ income declined by 15.1%.
In the first three quarters of this year (January-September) due to the coronavirus pandemic, workers’ income worldwide declined by an estimated 10.7 percent, or $ 3.5 trillion, compared to the same period last year. This figure does not include the income support given by the relief package in different countries. The International Labor Organization (ILO) said this on Wednesday.
The ILO, in its latest estimate of the impact of the coronavirus pandemic on the world of labor, stated that the labor losses across the world had fallen drastically due to the huge loss of work hours due to the epidemic. The ILO said that the highest impact was seen on low-middle-income countries, where workers’ income fell by 15.1 percent. In the region, the worst impact was on American countries, where the income of workers fell by 12.1 percent.
Global working time loss much higher than earlier estimate
The ILO Monitor: Kovid-19 End and the World of Work (sixth edition) also states that the number of hours of work lost worldwide is much higher than earlier estimates. The revised estimate of loss of global working time for the June quarter this year is 17.3 percent as compared to December 2019 quarter, which is equivalent to 49.5 million full time jobs. The working time loss in the September quarter is estimated at 12.1 percent, which is equivalent to 34.5 million full time jobs.
Business hours were lost due to closure of business activities
The global working time loss in the fourth quarter (October-December 2020) is estimated to be 8.6 percent or 24.5 million full-time jobs on an annual basis. Why did the working hours fall drastically? In this regard, the ILO said that in developing and emerging economies (especially in the field of informal employment), workers have been affected more than any previous crisis. The ILO also said that the decline in working hours is attributed to lower unemployment and decline in business activity.
94% of workers are in countries where workplaces are banned in some way.
The ILO said that 94 percent of the workers are in countries where workplaces are banned in one way or the other. 32 per cent of the workers are in countries where all business activities are banned except essential activities. ILO Director General Guy Ryder said in Geneva that workers’ working hours had dropped by more than 15 percent in developing countries.
If financial relief is not provided, the working hour loss in the June quarter would have been 28%, not 17.3%.
Rider said that had the governments not provided financial relief, the working-hour loss in the April-June quarter would have been 28 percent, not 17.3 percent. Developing countries will have to provide a further relief of $982 billion to equal the relief package given in high-income countries compared to working time lost. Under this, a further relief package of $45 billion will be given to low-income countries and $937 billion to low-middle-income countries.