In its latest analysis of the impact of the Covid-19 pandemic on the labor market, the International Labor Organization (ILO) showed the violence of the current crisis.
An unprecedented labor market crisis
The International Labor Organization (ILO) has published its study on the impact of the global Covid-19 pandemic on the labor market. Thus, the ILO highlights that the 2020 crisis will have been four times more violent for the labor market than that of 2009, which is already highly devastating. The latest figures put forward by the observatory show thatin 2020, 8.8% of working hours were lost across the world, the equivalent of 255 million full hours.
In order to have a complete and clear estimate of this crisis in the labor market, the ILO recalls that looking only at unemployment would be a mistake. The inactivity of workers during the pandemic must also be taken into account. Indeed, according to the ILO, 71% of job losses resulting from the drop in hours worked are due to inactivity and not unemployment..
In terms of lost income, the 8.8% of lost working hours worldwide is equivalent to US $ 3.7 trillion or in gross international product 4.4% of global GDP.
Women and young workers most affected
The International Labor Organization has also determined which segments of the population have been most affected by this labor market crisis. Not surprisingly, women and young workers have been the most impacted. Women saw their share of employment fall by 5% in 2020 compared to 3.9% for men.
Young workers are also not spared by this unprecedented labor market crisis. For young people between 15 and 24, the job loss is 8.7% in 2020 against 3.7% for adults.
To be able to emerge from the current market crisis in 2021, the International Labor Organization advocates the implementation of human-centered policies. The ILO forecasts an optimistic scenario which counts on a decrease of 1.3% of working hours in 2021 and a pessimistic scenario which stands at 4.6% of working hours lost.