We begin an in-depth discussion with experts from around the world.
COVID-19 is no longer just a global health crisis.
It has morphed into an enormous labor market and economic crisis, with millions of workers
across the world life without a job. We're seeing hundreds of thousands of jobs
being lost in countries like the United States and South Korea as all sectors, from small
shops to manufacturing plants, have been paralyzed by the pandemic.
The ILO has warned that fast action is needed and for an idea on what steps we need to take,
we have Dr. Lee Sang-heon,... Director of the Employment Policy Department at the International
Labour Organization in Geneva. Also joining us is Dr. Johannes Moenius, Professor
and Director of the Institute for Spatial Economic Analysis at the University of Redlands
in California. First of all, Dr. Lee, your organization's
report says it's likely millions will lose their jobs as a result of the COVID-19 pandemic.
Who are most at risk, and what makes this crisis different from the 2008 global financial
crisis? After the 2008 financial crisis, 22 million
people across the world lost their jobs. This time around, the low estimate is 5.3 million
job losses while the worst case scenario is nearly 25 million. But putting aside the optimistic
and pessimistic figures. In your eyes, what's the most realistic scenario?
Dr. Moenius: Some countries are introducing financial support, loans and tax relief, including
for self-employed people and companies of different shapes and sizes. They're trying
to stem mass job losses and are even dishing out cash payments until the worst is over.
Do you think there are some blind spots that policymakers have missed?
Dr. Lee: The response to massive layoffs depends on each country's industrial landscape and
the characteristics of their labor market. Fundamentally speaking, what should be provided
as a social safety net to secure livelihoods, especially for low-income workers?
In countries like Spain, that was already experiencing chronically high unemployment
before this outbreak, what needs to
be done now? Many
are hoping for a V-shaped economic recovery. Maybe the numbers will
add up eventually. But what are the chances the labor market won't recover
as quickly? Looking beyond
the pandemic, what are some underlying problems we should address in the modern labor market
or lessons we should learn from after this? That's all we
have time for today. Thank you Dr Lee Sang-heon
and Dr. Johannes Moenius joining us from Geneva and California.