After Severe Losses in 2020, Global Labour Market Could Recover in H2 2021

According to a recent report by the International Labour Organization (ILO), the coronavirus pandemic caused a loss of around 8.8% of global working hours in 2020 – four times greater than the devastation caused by the 2008-09 global financial crisis. The pandemic caused losses of 255 million full time jobs and rendered 114 million workers unemployed on account of the lockdowns and restrictions.

Global labour income fell by 8.3% last year, which translates to around $3.7 trillion or around 4.4% of global GDP. Of the losses the labour market incurred due to the pandemic and ensuing lockdowns, 71% of jobs lost were the result of inactivity, with 81 million people dropping out of seeking a job due to restrictions, social obligations or other reasons.

Director General at the ILO, Guy Ryder, remarks, “This has been the most severe crisis for the world of work since the Great Depression of the 1930s. Its impact is far greater than that of the global financial crisis of 2009.”

On a positive note, however, the ILO has observed some signs pointing to recovery, even though held back by high levels of uncertainty. Most countries around the world could see strong recovery in the labor market towards H2 2021, boosted by the rollout of COVID-19 vaccines.