Economy
ILO: labor market recovery is slower than expected
Employees at the Daikin plant in Pilsen, Czech Republic. Photo: Chaloupka Miroslav / CTK / dpa
© dpa-infocom GmbH
Richer countries have come through the crisis better, says the International Labor Organization – and at the same time warns that inequality in the labor markets is worsening.
According to an analysis by the International Labor Organization (ILO), the corona pandemic is having a greater impact on labor markets worldwide than previously thought.
The economic recovery is unevenly distributed, and that is due to the unequal vaccination rates and financial resources of the governments, said ILO boss Guy Ryder on Wednesday in Geneva. “We had expected a slow but sustained recovery this year. That relative optimism has faded, ”he said.
In 2021, the number of working hours worldwide will be 4.3 percent below the pre-pandemic level, corresponding to 125 million fewer full-time positions, according to the ILO. In June she was still assuming minus 3.5 percent or 100 million fewer full-time positions.
Even before the pandemic, almost half a billion people worldwide were unemployed or without adequate work, according to the ILO. Millions of young people enter the labor market every year.
The pandemic has exacerbated inequality between and within countries, Ryder said. Richer countries could have absorbed the economy better than poorer ones with tax incentives and other means. Within the countries, smaller companies and less skilled workers have suffered the most from the pandemic.
Ryder warned against letting inequality worsen further. Governments would have to avert this with financial and technical assistance. He appealed to rich countries to ensure that more vaccinations can be obtained in poorer countries.
The World Health Organization (WHO) complains that rich countries are hoarding vaccines for booster vaccinations, while in poor countries even health workers are still waiting for the first vaccination due to a lack of vaccines.