Global Economy: Massive social disaster looms as worldwide job losses from coronavirus pandemic expected to reach 25 million - by Jerry White

Millions of workers throughout the world are being thrown out of work due to the coronavirus pandemic, creating the conditions for an unprecedented economic and social crisis.

The International Labor Organization (ILO) has warned that 25 million workers could join the ranks of the unemployed over the next several months. By comparison, the 2008-09 global financial crisis increased global unemployment by 22 million.

The spread of the COVID-19 disease has already exacted a terrible human toll, with nearly 250,000 cases and more than 10,000 fatalities across the globe. The economic and social crisis, which began with the shutdown of a significant portion of China’s economy and the disruption in the global supply chain, has now spread around the world as restaurants, retailers, airlines, public schools and factories close or sharply curtail operations.

While pouring trillions into the stock markets and preparing bailouts of the airline and other industries, the Trump administration in the US and capitalist governments around the world are doing little or nothing to protect workers from economic disaster.

Read more at: Massive social disaster looms as worldwide job losses from coronavirus pandemic expected to reach 25 million - World Socialist Web Site

International Labour Organization: GLOBAL EMPLOYMENT TRENDS 2014 - by Raymond Torres

South Asia  farrner plowing rice field

Global unemployment increased by 5 million people in 2013

The global labour market situation remains uneven and fragile. True, there are encouraging signs of economic recovery in those advanced economies most affected by the global financial crisis which erupted in 2008.

Also, a number of emerging and developing countries − including: in the Sub-Saharan Africa − are enjoying relatively robust economic growth. The world economy may thus be growing somewhat faster than over the past three years.

However, the report finds that those economic improvements will not be sufficient to absorb the major labour market imbalances that built up in recent years. First, over the fore seeable future, the world economy will probably grow less than was the case before the global crisis. This complicates the task of generating the over 42 million jobs that are needed every year in order to meet the growing number of new entrants in the labour market.

Second, and more fundamentally, the root causes of the global crisis have not been prop erly tackled. The financial system remains the Achilles heel of the world economy.

The state of many banks is such that many sustainable enterprises, notably small ones, have limited access to credit, thereby affecting productive investment and job creation. Significant financial bubbles have re-appeared in a number of advanced and emerging economies, adding new uncertainties and affecting hiring decisions.

Also, global labour incomes continue to increase at a slower pace than justified by observed productivity gains, thus affecting aggregate demand.

Third; and this is an important new finding in view of the post-2015 development debate  −  little progress is being made in reducing working poverty and vulnerable forms of employment such as informal jobs and undeclared work. If confirmed, this trend would unambiguously delay the achievement of development goals.

To ensure lasting job recovery, the report highlights the role of a strategy that combines short-term measures (job-friendly macroeconomic and labour market policies) with further action to tackle long-standing imbalances.

Such a strategy would strengthen the economic recovery and pave the way for more and better jobs.

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