European labour market has above average risk exposure from the crisis in terms of employment impacts
At a webinar organized by Eurocities, Steven Kapsos, Head of the ILO's Data Production and Analysis Unit, presented the ILO’s assessment of the impact of the global pandemic on the world of work.
12 May 2020
The ILO estimates that 305 million jobs will be lost in the second quarter (Q2) of 2020 as a result of the COVID-19 pandemic. The overall impact in Europe has been greater than average, with around 13 per cent of total working hours lost in Q2.
Four sectors are being particularly hard hit by the crisis, in terms of workplace closures and job losses: retail trade, manufacturing, accommodation and food services, and real estate and other business activities.
Overall 1.25 billion workers (around 38 per cent of the world’s employed) are working in these sectors. Significantly, in Europe, these sectors account for 50 per cent of all jobs, so the European labour market as a whole has above average risk exposure from the current crisis in terms of employment impacts.
Approximately 47 million firms operate in the hardest hit sectors. Many of these are small firms with fewer than ten employees and they face the greatest risks from an abrupt halt in revenues.
“We’ve already seen very strong stimulus measures put in place in many countries, however international coordination has been lacking and this is likely a situation that will require ongoing stimulus measures that evolve over time,” Mr Kapsos told participants.
Governments should explore all options to finance measures that support firms and their workers, provide adequate social protection and target the most vulnerable – including small enterprises and workers in the informal economy.
It’s important to move quickly: simplifying procedures to access unemployment benefits, extending support to self-employed workers and making it easier for firms, especially small and informal ones, to secure credit and loan guarantees. Policies need to focus on providing income support for businesses to maintain payrolls.
Investments in occupational safety and health are more critical than ever, he added. “Of course for health workers on the front-line, but also for many other types of workers that have emerged as heroes – supermarket checkout workers, pharmacists, delivery workers, garbage collectors and so many others that are suddenly facing a new and serious occupational health risk each day they work,” he concluded.
Four sectors are being particularly hard hit by the crisis, in terms of workplace closures and job losses: retail trade, manufacturing, accommodation and food services, and real estate and other business activities.
Overall 1.25 billion workers (around 38 per cent of the world’s employed) are working in these sectors. Significantly, in Europe, these sectors account for 50 per cent of all jobs, so the European labour market as a whole has above average risk exposure from the current crisis in terms of employment impacts.
Approximately 47 million firms operate in the hardest hit sectors. Many of these are small firms with fewer than ten employees and they face the greatest risks from an abrupt halt in revenues.
“We’ve already seen very strong stimulus measures put in place in many countries, however international coordination has been lacking and this is likely a situation that will require ongoing stimulus measures that evolve over time,” Mr Kapsos told participants.
Governments should explore all options to finance measures that support firms and their workers, provide adequate social protection and target the most vulnerable – including small enterprises and workers in the informal economy.
It’s important to move quickly: simplifying procedures to access unemployment benefits, extending support to self-employed workers and making it easier for firms, especially small and informal ones, to secure credit and loan guarantees. Policies need to focus on providing income support for businesses to maintain payrolls.
Investments in occupational safety and health are more critical than ever, he added. “Of course for health workers on the front-line, but also for many other types of workers that have emerged as heroes – supermarket checkout workers, pharmacists, delivery workers, garbage collectors and so many others that are suddenly facing a new and serious occupational health risk each day they work,” he concluded.