As most countries have been easing lockdown measures, the time is ripe to figure out the economic damage. All economies have incurred dramatic losses. The extent of the global havoc alarmed the UN. Its General Secretary appealed to state leaders to make the right conclusions from the pandemic-driven crisis and create new jobs with decent wages.
Having scrutinized the devastating effect, the United Nations discovered serious flaws in labor markets around the world. The intergovernmental organization warns that such faults are bound to entail massive unemployment which could spark off violent clashes. Social unrest poses a threat to the stability of some regions and large countries, UN Secretary-General Antonio Guterres voiced his concerns.
The UN leader pointed out that the COVID-19 pandemic messed up labor markets everywhere, actually turning things upside down. Virtually any employee has been somehow affected as the lion’s share of businesses worldwide is facing a tough challenge. According the UN’s estimates, those working in the informal sector of the economy lost 60% of their personal income in the first month of the crisis amid the shutdown. The vast majority of people was left without any livelihood, Antonio Guterres cleared up the case.
Despite the havoc, some companies showed remarkable resilience under recession. They have adjusted their routine for changing labor conditions. For instance, some of them allowed their employees to work online from home. In the course of time, remote work proved itself as efficient as office work. However, remote work is hardly possible for industrial enterprises. Apart from the industrial sector, the pandemic crippled the services sector. Lots of firms terminated their activities. Economists fear that a range of small and mid-sized companies is unlikely to reopen again. They will not be able to cope with fierce competition under the post-pandemic conditions. The UN General-Secretary called on state leaders to step up efforts to cushion the pandemic shocks to the global labor market. The policymaker suggests that governments should support vulnerable companies, so that they could sustain jobs. From his viewpoint, employers have to give the highest priority to safety in the period of the economic recovery. The UN leader is certain that new technologies will be helpful in creating new well-paid jobs. Such measures will somehow reduce strain in the post-pandemic labor market, Antonio Guterres sums up.