COVID-19 has exposed fragility of world’s economy – ILO

Abuja – Mr Guy Ryder, Director-General, the International Labour Organisation(ILO) says COVID-19 pandemic has  exposed the fragility of the world’s economy.

Ryder in a statement on Friday said that the Coronavirus pandemic was not just a medical crisis, but a social and economic one.

He said that the human dimensions of the COVID-19 pandemic have reached far beyond the critical health response.

According to him, all aspects of our future will be affected such as the economic, social and developmental.

“Our response must be urgent, coordinated and on a global scale, and should immediately deliver help to those most in need.

“From workplaces, to enterprises, to national and global economies, getting this right is predicated on social dialogue between governments and those on the front line such as the employers and workers.

“ So, that the 2020s do not become a re-run of the 1930s. ILO estimates are that as many as 25 million people could become unemployed, with a loss of workers’ income of as much as USD 3.4 trillion.

“However, it is already becoming clear that these numbers may underestimate the magnitude of the impact, ‘’he said.

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The ILO director-general said that the pandemic has mercilessly exposed the deep fault lines in the labour markets.

He therefore said that enterprises of all sizes have already stopped operations, cut working hours and laid off staff.

“Many are teetering on the brink of collapse as shops and restaurants close, flights and hotel bookings are cancelled, and businesses shift to remote working.

“ Often the first to lose their jobs are those whose employment was already precarious – sales clerks, waiters, kitchen staff, baggage handlers and cleaners.

“In a world where only one in five people are eligible for unemployment benefits, layoffs spell catastrophe for millions of families.

“We will all suffer because of this. It will not only increase the spread of the virus but in the longer-term dramatically amplify cycles of poverty and inequality.

“We have a chance to save millions of jobs and enterprises, if governments act decisively to ensure business continuity, prevent layoffs and protect vulnerable workers,’’ he said.

He added that, we should have no doubt that the decisions they take today will determine the health of our societies and economies for years to come.

Ryder noted that unprecedented, expansionary fiscal and monetary policies are essential to prevent the current headlong downturn from becoming a prolonged recession.

He called government and employers of labour to ensure that workers have enough money in their pockets to make it to the end of the week and the next.

“As governments try to flatten the upward curve of infection, we need special measures to protect the millions of health and care workers who risk their own health for us every day and other essentials, must be adequately protected.

“To maximise the effectiveness of those measures it is essential for governments to work with employers’ organisations and trade unions to come up with practical solutions, which keep people safe and to protect jobs.

“These measures include income support, wage subsidies and temporary layoff grants for those in more formal jobs, tax credits for the self-employed, and financial support for businesses,’’ Ryder added.

ILO on March 18, the economic and labour crisis created by the COVID-19 pandemic could increase global unemployment by almost 25 million.

According to a new assessment by the ILO, called for urgent, large-scale and coordinated measures across three pillars: protecting workers in the workplace, stimulating the economy and employment, and supporting jobs and incomes.

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. In addition, the note proposes fiscal and monetary policy measures, and lending and financial support for specific economic sectors. (NAN)