The coronavirus pandemic continues to keep businesses shut down or at reduced operations throughout the country, forcing many companies to layoff or furlough employees. So far, nearly 10 million Americans have filed for unemployment, and experts estimate that the unemployment rate is at about 13%. Economists at the Federal Reserve Bank of St. Louis said in a recent analysis that overall the US will lose 47 million jobs, resulting in an unemployment rate of 32.1%, which is 7.2% higher than it was at the worst point of the Great Depression.
While numbers for Americans are bleak, what does the big picture look like around the world? The United Nations has released new numbers estimating how many jobs could be wiped out by the end of 2020 due to the effects of the ongoing coronavirus pandemic.
How many jobs will be lost by the end of June?
Three weeks ago the United Nations’ International Labour Organization (ILO) announced that the coronavirus pandemic will wipe out 25 million jobs around the world by the end of 2020. That bleak figure is now predicted to be almost eight times more than originally predicted– and that’s just by the end of the second quarter.
A new report from the United Nations’ ILO, released on April 7, stated that there could be a global loss of 195 million jobs by the end of the second business quarter because of the coronavirus pandemic.
Guy Ryder, the director of United Nations’ ILO, now estimates that 30 million jobs were already lost in the first quarter of 2020. This new report forecasts a 6.7% drop in global working hours in the second quarter, and a 6.3% decline in the Americas.
“Workers and businesses are facing catastrophe, in both developed and developing economies,” Ryder said.
With adjusted figured, the ILO reported that there is a high risk that the increase in global number of unemployed at the end of 2020 will be significantly higher than the initial projection of 25 million. The
According to the report, the amount of the eventual increase in global unemployment throughout 2020 will depend on how quickly the economy will recover in the second half of the year and how effectively policy measures will boost labour demand.
Already, four out of five people in the 3.3 billion-person global workforce are currently impacted by workplace closures.
Which sectors will be impacted most?
At the end of March, more than 80% of the world’s employed people were living in countries with recommended or required workplace closures due to governments’ social distancing guidelines.
Unsurprisingly, Ryder reported that retail, real estate, manufacturing, and food service industries will feel the effects of the global collapse most heavily. The ILO estimates that 38% of the global workforce, or 1.25 billion workers, are employed in one of those industries.
Other sectors are at high-medium risk of economic impact, including transport, storage, communication, arts, entertainment, and recreation.
In terms of share of employment in at-risk sectors, the Americas, Europe, and Central Asia have the highest percentages of employment in at-risk sectors. The Americas have 43.2% of employment in at-risk sectors, while Europe and Central Asia have 42.1% of employment in at-risk sectors.