- Advertisement -spot_img
HomeAnalysis436 million businesses face disruption, says ILO

436 million businesses face disruption, says ILO

More than 436 million enterprises face high risk of serious disruption worldwide due to the coronavirus pandemic, a new report by the International Labour Organisation has revealed.

These businesses, according to the report, are majorly found operating in hardest hit sectors such as wholesale and retail, manufacturing, accommodation and food services as well as real estate.

The report stated, “Worldwide, more than 436 million enterprises face high risks of serious disruption. These enterprises are operating in the hardest-hit economic sectors, including some 232 million in wholesale and retail, 111 million in manufacturing, 51 million in accommodation and food services, and 42 million in real estate and other business activities.”

The report added that as a result of the economic crisis created by the pandemic, almost 1.6 billion informal economy workers (representing the most vulnerable in the labour market), out of a worldwide total of two billion and a global workforce of 3.3 billion, had suffered massive damage to their capacity to earn a living.

This, it stated, was due to lockdown measures and/or because they worked in the hardest-hit sectors.

The report read in part, “The first month of the crisis is estimated to have resulted in a drop of 60 per cent in the income of informal workers globally. This translates into a drop of 81 per cent in Africa and the Americas, 21.6 per cent in Asia and the Pacific, and 70 per cent in Europe and Central Asia.

“Without alternative income sources, these workers and their families will have no means to survive.”

The ILO called “for urgent, targeted and flexible measures to support workers and businesses, particularly smaller enterprises, those in the informal economy and others who are vulnerable.”

It noted that measures for economic reactivation should follow a job-rich approach, backed by stronger employment policies and institutions, better-resourced and comprehensive social protection systems.

- Advertisement -

Must Read

spot_img
spot_img
spot_img

Related News