(Bloomberg) – The covid-19 pandemic will cause a “sustained and pronounced rise in unemployment” and low- and middle-income countries that have lagged behind in the administration of vaccines will be the most affected, according to the International Organization for the Job.
The ILO fears that not enough jobs will be created to welcome those who lost their jobs as a result of COVID-19, as well as new entrants to the labor market. The global deficit is estimated to be 75 million this year and 23 million in 2022.
“Projected job growth will be too weak to provide sufficient job opportunities for those who were left inactive or unemployed during the pandemic and for younger cohorts entering the labor market,” the ILO said. “Many previously inactive workers will enter the workforce, but will not be able to find employment.”
The Geneva-based body’s prediction is the latest evidence that the pandemic has reversed years of progressive advances for well-being around the world.
Not only has unemployment risen in many countries despite job-suspension programs to help companies retain staff, but the rate masks the extent of the damage. Many people, especially women and young people, have left the job market and are not being told.
Furthermore, schooling has been interrupted in many places due to the need to stop the spread of the disease.
The ILO estimated that the jobs created are likely to be of lower quality, and the problem is most severe in poorer countries with large informal economies.
“The crisis is likely to exacerbate inequality within and between countries in the coming years,” the ILO said. “It presents the risk of creating an additional dimension of economic and social consequences at the international level that will manifest itself in slower and uneven progress towards poverty reduction.”
Original Note: Global Economy Will Still Be 23 Million Jobs Short Next Year
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