03 Sep The Staggering COVID-19 Impact on Employment: A Fragment of Economic Fallout During The Pandemic
COVID-19 impact on employment is definetely not a joke, as it brings even heavier burden towards people with low income, and those people that even lost their source of income because of the pandemic. Now, not only they had to worry about their health, perhaps those people whose job is greatly affected by the pandemic had to worry about their finance as well. Unemployment rate goes on even before this virus started stirring chaos, so now with this article we would like to brief the concerning COVID-19 impact on employment.
COVID-19 Impact on Employment
In the UK, the unemployment rate is at 4.8%, time-framed from January 2021 to March 2021 (according to the Office for National Statistics). COVID-19 impact on employment in UK have made one in 20 people can’t find a job, it was more than at the start of the pandemic. The good news is, businesses have become better at coping with lockdowns, while the government spending billions of pounds to support jobs. Those who feel the COVID-19 impact on employment were young people who work at shops, pubs, restaurants and leisure.
The Bank of England expects the unemployment rate in UK to reach around 5.5% in the autumn (September 2021-December 2021). The Bank of England also predicted that the number of unemployed youth will decrease next year as the economy continues to recover. Meanwhile, in the Asia-Pasific region, COVID-19 impact on employment hits quite hard as it brings massive drops in working hours. Millions of workers are asked to work reduced hours or even no hours at all, reducing the income and the chance to make a living.
According to a new report by the International Labour Organization (ILO), working hours in Asia Pacific has decreased by an estimated 15.2% in the second quarter and by 10.7% in the third quarter of 2020. COVID-19 impact on employment has caused millions of people went unemployed as job creation in the region collapsed, and according to the report, those who felt the most damage were women and young people. With fewer hours of work, labour income will also be fewer, resulting to a 3% loss in GDP, during the first three quarters of 2020.
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In general, COVID-19 impact on employment have caused about more than a quarter of a billion global jobs to be lost, stated by the United Nations. ILO also stated that about 8.8% of global working hours were lost in 2020 (That is equivalent to 255 million full-time jobs). Last year, worldwide jobless rate was 6.5 percent, that’s a total of 220 million people without jobs. Moreover, about 81 million people did not register as unemployed but “simply dropped out of the labour market”, as explained by ILO chief, Guy Ryder.
The lost working hours last year shrank the global labour income by a full 8.3%, stated by the ILO. Globally, employment losses for women last year stood at 5%, compared with 3.9% for men. The terrible COVID-19 impact on employment might be recovered, but it will be slow, uneven and uncertain. Younger workers also felt the difficulty of employment during these times, 8.7% of young workers on the age of 24 and below has experienced employment loss globally, bigger compared to older workers which is 3.7%.
The working sectors that received the worst COVID-19 impact on employment are accommodation and food services, showing a drop in employment of more than 20%. In the contrary, business is booming in the information and communication fields, as well as in finance and insurance. ILO made a request on countries to provide particular support to the hardest-hit groups and sectors, which is likely to be able to generate numerous jobs quickly. ILO also advised the need for more support to poorer countries with low resources.
ILO’s prediction for 2021 is that in the pessimistic scenario, working hours will drop for an additional 4.6%, and even in the most optimistic scenario, it does not see any positive increase, but rather decreasing the pessimistic number into 1.3%. To wrap this up, COVID-19 impact on employment most likely happened because of pandemic restrictions, social obligations, or people have just given up looking for work. The field of work is shrinking, and the people has nowhere to utilize their skills to make a living.
Source: Unemployment rate: How many people are out of work?, By Ben King, May 18th 2021