With unemployment levels soaring across the world, the ILO (International Labour Organisation) released a policy brief which outlined the steps they recommend for global governments to take in order to mitigate the impact of the crisis.
It is clear from the ILOs report that the economic impact of Covid-19 is totally unprecedented, and governments are having to deal with an unemployment crisis never seen before in modern history.
The initial trade shocks and travel restrictions which came into place as Covid-19 began to spread around the globe were actually far less damaging than the result of worldwide lockdowns.
Although going into lockdown was a necessary measure for governments to contain the spread of the virus, the impact it had on production and the demand for many goods and services, particularly hospitality and tourism, was immediate and far-reaching. The result was inevitably widespread job losses, most obviously demonstrated in the US where 36.5 million unemployment claims have been made in the last 8 weeks.
In order to combat the economic impact of Covid-19 on jobs in particular, the ILO has released the following policy framework based on international labour standards:
Source: International Labour Organisation
Whilst these are all excellent ideas in theory, the issue is whether the advice on the one hand is too little too late, and on the other hand, whether they are actually achievable given the differing economic situations faced by countries around the world.
THINK LIKE AN ECONOMIST!
Q1. According to the ILO, what has caused the largest impact on employment levels? Explain why.
Q2. Choose a measure from each pillar and explain how this policy, if implemented effectively, could help to protect jobs.
Q3. Discuss the extent to which economies around the world will be able to effectively implement the policies outlined by the ILO in order to combat the impact of Covid-19 on employment.
Click here for the source article
