Labour market recovery ‘slow and uncertain’
The United Nations’ International Labour Organization (ILO) said that the Covid-19 pandemic affected the global labour market. In its 2022 World Employment and Social Outlook Trends report, the ILO forecast that the number of hours worked globally in 2022 would be 1.8% lower than in the fourth quarter of 2019.
The ILO report was published on Monday. The report said that global unemployment is expected to remain above pre-COVID levels until at least 2023 as the Covid-19 crisis is continuing to hit jobs hard around the world.
ILO chief Guy Ryder said, “Global labour markets are recovering from the crisis much more slowly than we previously expected.” Ryder said, “We are already seeing potentially lasting damage to labour markets, along with concerns about increases in poverty and inequality.”
The report also estimated that global unemployment is expected to reach 207 million in 2022. Ryder warned that the pandemic had already weakened the economy of the world. The report pointed out the reasons behind the expected slowdown in the labour market recovery. It said that Covid-19 variants like Delta and Omicron affected the labour market. Reportedly, labour market recovery is strongest in high-income countries. The recovery rate is lower in middle-income economies.
The report also highlighted that the closing of education and training institutions will have long-term implications on the younger generation. It went on to say that closing the institution will particularly affect those without internet access.
The group said that lower vaccination rates and tighter fiscal space in developing countries also affected the global labour market. Covid-19 cases are increasing again across the globe. Daily COVID-19 infections are also increasing rapidly once again. The covid-19 pandemic is affecting labourers, businesses, and markets across the globe. Reportedly, the labour shortage increased in recent days due to the high level of Covid-19 infection.