Global job losses due to the crisis coronavirus They could exceed the 25 million estimate a few days ago, UN officials said Thursday, just as applications for unemployment benefits in the United States rose to a record high and showed the magnitude of the economic disaster. Read Covid-19: Infonavit launches support against unemployment
The International Labor Organization (ILO), a UN body, had estimated a week ago that, based on different scenarios for the impact of the pandemic on growth, the number of unemployed in the world would increase by 5.3 million and 24.7 million.
More than three million people applied for unemployment benefits to the US Department of Labor. Photo: AP
However, Sangheon Lee, director of the ILO’s employment policy department, told . in Geneva on Thursday that the scale of temporary unemployment, layoffs and the number of requests for unemployment assistance was much higher than expected.
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“We are trying to take into account the massive temporal impact in our estimation model. The magnitude of the fluctuation is much greater than expected,” he said. “The projection will be much higher than the estimated 25 million.”
The 2008/2009 global financial crisis increased global unemployment by 22 million people.
In U.S, where measures to contain the pandemic have suddenly stopped the country, the number of people who filed for unemployment benefits rose to more than 3 million last week.
The total broke the record of 695,000 in 1982. Economists polled by . had forecast that orders would rise to 1 million, but some estimates were as high as 4 million.
The data added to an alarming scenario outlined by James Bullard, president of the St. Louis Federal Reserve Bank, who warned that up to 46 million Americans, nearly a third of workers, could lose their jobs in the short term.
PARALLY IN INDIA
Countries around the world have felt the intense human and economic pain caused by the coronavirus, which has infected more than 480,000 people, killed more than 21,000 and is expected to trigger a global recession.
In India, where Prime Minister Narendra Modi announced a 21-day national quarantine this week to stop the spread of the disease, business associations warned that job losses could reach tens of millions.
Garish Oberoi, treasurer of the Federation of Indian Tourism Associations, told . the group estimates that around 38 million jobs could be lost in the tourism and hospitality sector alone.
Among the most affected will be the approximately 120 million migrant workers in India, for whom quarantine means wages disappear. Many cannot afford rent or food in cities, and with transportation systems paralyzed, many will have to walk hundreds of kilometers to return to their villages.
In Europe, France It is doing its utmost to convince companies not to lay off employees, including through a scheme that allows them to reduce hours of work without the worker taking a hit.
In Britain, the government said 477,000 people in the last nine days have requested a payment to help the unemployed or people with low incomes. The group of experts from the Resolution Foundation, which manages the grant, said there was an increase of more than 500% compared to the same period in 2019.
Ireland’s unemployment rate could rise to around 18% in the boreal summer from 4.8% last month, the think tank of the Institute for Economic and Social Research said on Thursday, projecting a recession with a contraction. of production of 7.1% in 2020.
“Unemployment is extremely sensitive and volatile in response to economic activity, that is quite worrying in our opinion,” said Lee of the ILO.
“The perception of companies is that it may take longer to return to normal activities,” he said. “They are making quick decisions to adjust their workforce instead of keeping workers.”