A billion workers to lose out as coronavirus ravages jobs market

Linda J. Dodson

More than a billion workers around the world are set to suffer financially as the coronavirus destroys jobs, cuts working hours and slashes pay.

One-third of the global workforce is expected to feel the effects directly, according to the International Labour Organisation, with those in the retail, manufacturing, accommodation and food, and travel and transport industries particularly hard hit.

Almost half a billion people work in retail and wholesale, many of whom are already out of work as shops are closed to try to contain Covid-19’s spread.

“Workers in this sector who are engaged in activities deemed essential (eg food distribution) may continue to work, but they face greater occupational health risks. Workers in non-essential businesses face widespread closures and sharp reductions in employment and hours,” said the ILO.

“The accommodation and food services sector is also severely affected, accounting for 144m workers. This sector is suffering from almost full closure in some countries and a steep decline in demand in cases where operations can continue.”

Another 463m in manufacturing are at risk.

“Quarantine measures, closure of retail stores, cancelled orders and salary reductions are suppressing demand in key industries such as automobiles and textiles, clothing, leather and footwear,” said the UN agency.

Those who are most exposed are typically lower-paid workers with fewer job protections and resources to fall back on for a spell of unemployment.

This may only be the beginning as other industries have yet to feel the full effect of the pandemic: “Although the economic impact has not yet been felt in agriculture, the largest sector in most developing countries, risks of food insecurity are emerging due to containment measures, including border closures. Over time, workers in this sector may be increasingly impacted, particularly if the virus spreads further into rural areas.”

Many of the jobs may come back after the shutdowns are over, but the ILO notes there is “a high risk” the rise in unemployment will be “significantly higher” than last month’s worst-case estimate of an additional 25m people.

Even those in jobs in high demand are facing new risks from the virus itself.

“Globally, there are 136m workers in human health and social work activities, including nurses, doctors and other health workers, workers in residential care facilities and social workers, as well as support workers, such as laundry and cleaning staff, who face serious risk of contracting Covid-19 in the workplace,” said the ILO.

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