The International Labour Organization (ILO) recently issued the ninth edition of the ILO Monitor on the World of Work Report. This report revealed that globally, the number of hours worked has dipped in the first quarter of 2022, falling 3.8% below the employment status prior to the Covid-19 pandemic. Several key factors have been recognized as the primary reasons for these outcomes, including the renewed lockdowns in China, the ongoing conflict between Ukraine and Russia, and the worldwide rise in food and fuel prices.
Key Findings of the Report
Among the findings, the report highlighted a decrease in working hours, especially in India and Lower-Middle-Income countries. These nations witnessed a pronounced widening of the gender gap in work hours during the second quarter of 2020. However, as women in India initially had very low work hours, the reduction only slightly influenced the overall performance of lower-middle-income nations.
Another finding was the growing divergence between rich and poorer economies in recovery. High-income countries experienced a rebound in work hours, while low- and lower-middle-income economies experienced setbacks, with gaps of 3.6% and 5.7% respectively compared to pre-crisis benchmarks.
Workplace closures are currently trending downwards after an earlier spike at the end of 2021 and early 2022. The strictest form of closure has nearly vanished, pointing towards an improved situation.
The report also highlighted the differences in employment recovery trends, with high-income countries faring better than most middle-income economies. By the end of 2021, employment levels had bounced back in most affluent countries, but deficits remained significant in middle-income economies.
Additionally, three out of five workers lived in countries where average annual labour incomes had not recovered to their level of the fourth quarter of 2019. Informal employment, particularly for women, was impacted more but has rebounded faster than formal employment.
Specific Findings for India
Regarding India, for every 100 women working before the pandemic, an average of 12.3 would have lost their job during the period considered in the report. In contrast, for every 100 men, this figure was 7.5.
Recommendations from the Report
The report suggests improving the purchasing capacity of workers and advocating for decent jobs and wages. The Code on Wages passed in 2019 has not yet been implemented. A recovery centered on human needs towards a brighter and more inclusive future of work is imperative.
Timely and effective support, especially for the vulnerable, is required to maintain the living standards and the purchasing power of labour income. Macroeconomic policies need careful adjustment considering the challenge of combating inflation. For long-term recovery, well-designed policies are needed to create decent jobs and promote formalisation, sustainability, and inclusiveness.
About the International Labour Organization
The ILO is the sole tripartite United Nations agency, uniting governments, employers, and workers from 187 member states, including India. Established in 1919 by the Treaty of Versailles, the ILO’s headquarters are located in Geneva, Switzerland. The organization won the Nobel Peace Prize in 1969.
