As the world celebrated International Labor Day, millions of workers worldwide remained uncertain about the prospects of returning to work. Countries have enforced social distancing and lockdown rules that have wreaked havoc on economies.
Sectors like aviation, hospitality and accommodation, manufacturing, logistics, and education are the most affected by the directives. Millions of workers have lost their jobs, had salary deductions, or sent on compulsory leave with no pay.
In their latest report, McKinsey estimates that the jobs or incomes of some 150 million Africans, across the formal and informal sectors, are vulnerable in the crisis. This is equivalent to a third of the total jobs across the continent. Currently, it is estimated that the informal sector accounts for 300 million jobs while the formal sector employs nearly 140 million workers.
Some of the most vulnerable sectors like manufacturing, retail and wholesale, tourism, and construction could see more than half of their workforce sent home.
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According to the International Labour Organisation (ILO), full or partial lockdown measures now affect the livelihoods of almost 2.7 billion people — more than 4 out of 5 workers in the global workforce of 3.3 billion. Many millions of workers across the globe have been directly impacted by lockdowns. Many others have seen a reduction or complete loss of their livelihood.
Record job losses
For instance, in the US, a record 30.3 million workers filed for unemployment claims in the past five weeks, roughly 18.6% of the US labor force. It is still unclear how many more will lose their jobs in the coming weeks as retrenchments start hitting white-collar jobs.
Across Europe, the damage on labor is equally devastating as major airlines file for liquidation due to grounding of flights. Multinational firms have announced slashing employees in thousands as demand dwindles with uncertainty still looming. Moreover, firms under distress are winding up leaving thousands of workers stranded.
On the domestic front, the latest data from the labor ministry shows that at least 133,657 Kenyans have lost their jobs in the last two months, owing to COVID19. The number could be higher as the informal sector comprised of domestic workers, cleaners, beauticians, mechanics, and street vendors remain unaccounted for.
At this point, government social safety net measures may help cushion workers from the negative effects of COVID19 on the economy. There are expectations that the job losses will continue to soar with time.
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