The COVID-19 pandemic could throw 1.6 billion people in the informal sector out of work. That number translates to almost half of the world's population, according to the International Labor Organization.
The ILO estimates that 12.4% loss of working hours happened in the second quarter in the region of the Americas alone. The European and Central Asian regions, meanwhile, lost 11.8% of the working hours. The rest of the regions not mentioned accounted for 9.5% of the loss of working hours.
The 1.6 billion people that could be jobless due to the pandemic belong to the most vulnerable in the labor market, such as the no-work-no-pay position. These people have started losing income sources when lockdown measures persist. And as the situation continues, these individuals will still be unable to look for alternative income sources, leaving their families no means to survive.
Just in the first month of the pandemic alone, global informal workers saw a drop of 60% in their income. Per region, 81% of Africans and workers in the region of the Americas experienced a decline in income sources within just the first month of the lockdown measures. At the same time, workers in Asia and the Pacific region saw a 21.6% decline, and workers in Europe and Central Asia experienced a 70% income loss.
The ILO also looked into the different sectors of the economy, noting that more than 436 million enterprises are now facing high risks of "serious disruption." These businesses belong to the hardest-hit economic sectors. For instance, there are about 232 million in wholesale and retail that might not be able to bounce back immediately after the pandemic. Disruption is also possible for 111 million of businesses in the manufacturing sector, 51 million in accommodation and food services, and 42 million in real estate and related businesses.
While ILO has only dug deep into the informal labor sectors, employees in the private and corporate sectors are not excused from the aftermath of the pandemic.
On Wednesday, Boeing said it will cut 10% of its jobs or about 16,000 positions. There have been no air travels at present due to the pandemic, plus, the company is still recovering from the 737 Max grounding fiasco. The job cuts could manifest in buyouts, natural attrition, and involuntary layoffs. Much of the job cuts will occur in Boeing commercial airplane unit. The airlines has also temporarily closed in factories in Washington due to health reasons. The temporary shutdown costs the company $137 million.
British Airways has also announced job cuts to up 12,000 positions also due to pandemic. The airlines' parent company, IAG said it needs to restructure its organization up until demand for air travel returns.
Also on Wednesday, General Electric said it had cut 700 jobs in its power division. The company is also planning to reduce capital spending by 25% this year.
In March, the United States lost an estimated 701,000 jobs. The employment rate jumped from a 50-year-low of 3.5% to 4.4%. This was the highest increase in unemployment since August of 2017 and the sharpest monthly rise since January 1975.
