ILO Reports Major Impact on Female-Dominated Sectors Like Restaurants and Accommodation
Childcare Burden Concentrated on Women
Equivalent to 400 Million Jobs Lost in Q2 This Year
Employment Recovery to Pre-Pandemic Levels Unlikely Within This Year Even If Economy Recovers
[Asia Economy Reporter Naju-seok] An analysis revealed that 400 million jobs disappeared worldwide in the second quarter of this year due to the COVID-19 pandemic. Even if the economy recovers by avoiding the second wave of COVID-19, it is predicted that the employment situation will not return to the previous level within this year.
The International Labour Organization (ILO) estimated in a report released on the 30th of last month (local time) that global working hours decreased by 14% compared to the pre-crisis period due to COVID-19. This is equivalent to 400 million full-time jobs. The ILO had predicted last month that working hours would decrease by 10.7% (equivalent to 305 million jobs), indicating that the employment environment worsened within a month.
The reduction in working hours includes cases such as reduced working hours, temporary layoffs, and unemployment.
Guy Ryder, ILO Director-General, stated, "The impact on the labor market was greater than we expected, so we revised the estimates upward," and predicted, "The labor market will not show a recovery trend all at once." By region, working hours decreased by 18.3% in the Americas including the United States, 13.9% in Europe and Central Asia, 13.5% in Asia-Pacific, 13.2% in the Arab region, and 12.1% in Africa.
Although employment conditions are expected to improve as countries lift economic lockdown measures, it is forecasted that the situation will not return to pre-pandemic levels within the year.
Even if the economic situation rapidly improves and consumption and investment recover, working hours in the fourth quarter of this year are expected to be 4.9% less than before the COVID-19 crisis. In the best-case scenario, it is predicted that about 140 million full-time jobs will still be lacking. In the worst-case scenario, such as a second wave, the expected reduction in working hours could reach 11.9% by the end of the year, equivalent to 340 million full-time jobs.
The ILO also analyzed that the employment impact of COVID-19 differs by gender, with women suffering greater damage than men.
Industries such as food service, accommodation, retail, and textile manufacturing have a high proportion of female employment, and these sectors were directly hit by COVID-19. Domestic workers, estimated to number 55 million, are also in a precarious employment situation due to lockdown policies. It was pointed out that domestic workers are outside the scope of social security systems such as unemployment benefits, which could negatively affect their livelihoods.
School and childcare facility closures due to lockdown policies have increased childcare burdens, which is also a negative factor for women. Director-General Ryder pointed out, "Even if childcare burdens are shared, they are not distributed equally (between men and women)." The increased childcare burden has fallen disproportionately on women.
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