UN: Pandemic Could Cause 25 Million Job Losses

The UN's International Labor Organization estimates that fallout from the new coronavirus could drain up to $3.4 trillion worth of income by the end of this year.

The UN’s International Labor Organization estimates that fallout from the new coronavirus outbreak could cause nearly 25 million job losses and drain up to $3.4 trillion worth of income by the end of this year.

The Geneva-based agency said “an internationally coordinated policy response” could help mitigate such losses through worker protections, fiscal stimulus, and support for jobs and wages,

ILO laid out a number of scenarios on the impact of COVID-19 on the economy, estimating an increase in worldwide unemployment of between 5.3 million and 24.7 million people. That’s on top of the estimated 188 million that the agency had predicted late last year in its annual forecast.

The agency noted the global financial crisis boosted global unemployment by 22 million people.

“Falls in employment also mean large income losses for workers,” ILO said as it presented its preliminary assessment.