Coronavirus Crisis Risks Causing 25 Million Global Job Losses

(Bloomberg) -- The coranavirus pandemic could lead to more worldwide job losses than the global financial crisis, according to the International Labour Organization.

The outbreak could eradicate as many as 25 million jobs, the Geneva-based group said Wednesday. The meltdown of 2008-2009 increased unemployment by 22 million.

The figure could be as low as 5.3 million if the economic damage is contained, the ILO said, adding that governments should unleash “large-scale and coordinated policy efforts.”

The institute also said workers could suffer income losses of up to $3.4 trillion by the end of this year, translating into falls in consumption of goods and services.

It warned of a big increase in underemployment as working hours and wages are cut, with the number of working poor likely to rise significantly. The most vulnerable are likely to be those in less-protected and low-paid jobs, particularly younger and older employees, women and migrant workers.

“This is no longer only a global health crisis, it is also a major labor-market and economic crisis that is having a huge impact on people,” said ILO Director-General Guy Ryder. “In 2008, the world presented a united front to address the consequences of the global financial crisis, and the worst was averted. We need that kind of leadership and resolve now.”

Scenarios

Below is a summary of the ILO scenarios, based on differing declines in global GDP.

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