1.6 billion people worldwide, three-quarters of informal workers, are now facing "the immediate danger of their livelihoods being wiped out," warns the International Labor Organization (ILO), adding that almost - all work in units with less than 10 employees. Presenting a new ILO study on the economic consequences of containment linked to the coronavirus pandemic, the organisation's director general, Guy Ryder, told the media that it was to be expected to have "a huge impact in terms of of poverty ”.
While these people are among the most vulnerable in the labor market, "we must all think of the human suffering behind this figure," noted Guy Ryder, adding that these forecasts concern the second quarter. In the first month of the crisis alone, the income of informal workers fell by 60% worldwide. This translates into a fall of 81% in Africa and the Americas, 21.6% in Asia-Pacific and 70% in Europe and Central Asia. Without alternative sources of income, these workers and their families will no longer have a livelihood.
When employers and the self-employed are added up, some 436 million businesses in the most affected sectors worldwide are currently facing high risks of serious disruption. More than half of them - some 232 million - are found in the wholesale and retail trade, currently one of the most affected sectors worldwide.
Situation expected to worsen in second quarter
“Millions of businesses around the world are struggling to keep their heads above water. They have no savings or no access to credit. Yet this is the true face of the working world. If we do not help them now, they will simply perish, "said Guy Ryder in a statement.
According to the report, the share of workers living in countries where closure of the workplace is recommended or required has fallen from 81% to 68% in the past two weeks, mainly due to the lifting of closings in China.
According to ILO estimates, working hours worldwide fell in the first quarter by around 4.5% (equivalent to around 130 million full-time jobs, based on weekly hours 48 hours) compared to the fourth quarter of 2019. In the second quarter, the situation should worsen further due to the extension and extension of the containment measures.
The biggest loss of working hours in the Americas
Over this period, the ILO estimates that total working hours worldwide should be down 10.5% compared to that of the quarter preceding the crisis. This equates to 305 million full-time jobs, which represents a clear deterioration from the previous estimate published two weeks ago of 195 million.
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If the situation has worsened for all regions, estimates indicate that the Americas (-12.4%) and Europe and Central Asia (-11.8% for both regions) will experience the largest loss of working hours during this second quarter.
According to the ILO, the sectors most affected by the economic paralysis are accommodation and food services, industry, wholesale and retail trade, real estate and commercial activities.
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