"'Due to COVID-19' Half of the World's Workforce Faces Livelihood Threat"… International Labour Organization Report

Photo by ILO

[Asia Economy Reporter Donghoon Jeong] The global spread of the novel coronavirus infection (COVID-19) has seriously threatened the livelihoods of about half of the world's labor force.

The International Labour Organization (ILO) stated in a report released on the 29th (local time) that 1.6 billion workers in the global informal economy sector are at risk of livelihood destruction due to a sharp reduction in working hours caused by COVID-19. This corresponds to about half of the total labor force (3.3 billion people). The informal economy sector refers to the economic sector operating outside the formal employment structure. It is estimated that 2 billion people worldwide belong to this sector.

Guy Ryder, ILO Director-General, expressed concern, saying, "Without alternative sources of income, these workers and their families will have no means of survival."

He added, "Employment policies and comprehensive social security systems must follow economic revitalization measures," emphasizing, "International cooperation on stimulus packages and debt relief will also be important for effective and sustainable recovery."

During the first month of the economic crisis caused by the COVID-19 pandemic, wages of workers in the informal economy sector fell by an average of 60%, according to the ILO analysis. By region, wages decreased by 81% in Africa and the Americas, 70% in Europe and Central Asia, and 21.6% in the Asia-Pacific region.

The ILO cited lockdown measures implemented by many countries to prevent the spread of COVID-19 as the reason for this decline. Additionally, it diagnosed that these workers are mainly employed in industries severely affected by COVID-19.

This content was produced with the assistance of AI translation services.