ILO: the global economy has already lost about three billion workers
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ILO: the global economy has already lost about three billion workers

8 April , 13:28EconomyPhoto: nevsedoma.com.ua
The suspension of work of enterprises around the world deprived 81% of the total number of employees — 2.7 billion out of 3.3 billion.

Such information is contained in the submitted report of the International Labor Organization (ILO), reports Finanz.ru

Forced downtime will lead to the closure of businesses and increased unemployment. From April to June, the crisis caused by the coronavirus pandemic will reduce 6.7% of working hours worldwide, experts predict the organization. The global economy is facing such losses as if 195 million full-time people were not working a whole quarter.

125 million hands will lose Asian countries. This, according to the ILO, is 7.2% of the total labor force in Asia.

Arab countries are threatened by a reduction of five million people - 8.1% of the workforce.

In the EU countries, even more significant reductions are expected - 12 million people - 7.8% of the total number of employees in enterprises.

The disaster is now experienced by companies and employees in all countries, without exception, both in developed and developing countries, said Guy Ryder, director general of the International Labor Organization.

According to him, the hotel and restaurant business, the manufacturing and retail sectors, as well as the administrative sphere, will suffer the most.

The crisis strikes hardest in countries where income levels are above average. The losses of such countries taken together are as if 100 million people had disappeared from the labor market. This, according to the ILO, is significantly higher than during the global financial crisis of 2008-2009.

As for Russia, it will suffer the most. Due to temporary or complete shutdown of enterprises in connection with quarantine measures, 15.4 million people can become unemployed - 15% of the workforce, experts from the Center for Macroeconomic Analysis and Short-Term Forecasting calculated.

Russia's trade, both wholesale and retail, has already suffered the most. 4.2 million trade employees were already unemployed. Unemployed were 1.5 million employees of transport and logistics companies, 1.4 million employed in the field of catering and hotel business, 1.2 million employed in construction, and in addition, almost a million realtors, musicians, fitness trainers and other representatives of the sphere lost their jobs "Culture, sports, leisure and entertainment."

Over the past week alone, five million unemployed in small and medium-sized businesses have increased in Russia.

"If the restrictions continue for another month, we will get 20-25 million unemployed," said Alexey Zakharov, president of the recruiting portal Superjob.ru, on Radio Sputnik .

Earlier it was reported that the four largest Russian business associations - the Russian Union of Industrialists and Entrepreneurs (RSPP), the Chamber of Commerce and Industry (CCI), Opora Rossii and Delovaya Rossiya sent an appeal to Prime Minister Mikhail Mishustin stating the need urgent additional measures of state support.

The letter says that almost everywhere in the country there is a shock stop of demand - enterprises curtail their activities, lose the ability to cover operating costs, pay taxes.

Business associations offer to recognize as victims of the coronavirus not individual sectors of the economy, but enterprises engaged in all areas of economic activity, to radically reduce taxation on the payroll fund and provide companies with subsidies for paying two-thirds of the average monthly salary for the entire period of forced leave. In addition, the letter says that individual entrepreneurs without employees should be paid a monthly allowance of at least the minimum wage and exemption from payment of fixed contributions. The authors of the appeal ask to extend the self-employed regime to all regions since May and establish a single tax at a rate of 1%, consider the possibility of exempting companies from paying tax payments, as well as subsidizing rental payments, leasing and loans.

Meanwhile, from today, from April 8 to October 1, Russian companies will be able to take a targeted loan for salaries to employees within the framework of the adopted state program. Banks will issue “salary loans” for up to one year. The first six months, the loan will be interest-free, and then the rate will increase to 4%.

Earlier, as support for entrepreneurs, Russian President Vladimir Putin promised to reduce insurance premiums for small businesses from 30% to 15%, and also granted a delay for tax payments and, in some cases, for loan payments. But according to business representatives, this will not help companies survive.

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