‘Covid has put 108 million people in a poverty trap of self-employment’

The Covid-19 pandemic has left the global workplace worse off, with at least 108 million people in a poverty trap of self-employment, according to the World Employment and Social Outlook (Weso): Trends for 2021 report from the International Labour Organization (ILO). Picture: Waldo Swiegers

The Covid-19 pandemic has left the global workplace worse off, with at least 108 million people in a poverty trap of self-employment, according to the World Employment and Social Outlook (Weso): Trends for 2021 report from the International Labour Organization (ILO). Picture: Waldo Swiegers

Published Jun 3, 2021

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THE Covid-19 pandemic has left the global workplace worse off, with at least 108 million people in a poverty trap of self-employment, according to the World Employment and Social Outlook (Weso): Trends for 2021 report from the International Labour Organization (ILO).

Presenting the report yesterday, ILO director-general Guy Ryder said there had been a dramatic shift in poverty figures brought on by a shift from wages to self-employment, which did not improve the lot of workers.

“The reality is that often the self-employment is a question of survival. We need to invest in institutions of work to improve the quality of jobs. More than 61 percent of global workers have suffered in the time of the crisis,” he told journalists.

He said there had been a shift in employment, with sector-by-sector losses seen in small and micro firms observed through lost work hours as social protection kicked in to curb the spread of Covid-19.

Ryder was doubtful that sectors affected medically by the pandemic, such as hospitality, manufacturing, retail and wholesale, would bounce back to pre-pandemic levels.

The report highlighted globally sectors such as construction faced about 8.8 percent loss of working hours last year, while manufacturing lost about 7.3 percent.

Ryder cautioned care had to be taken not to obliterate workers’ rights, as restrictions placed on movement had a devastating impact on the ability to derive an income.

He said of concern was that the global workplace was now faced with the reality of an increase in forced labour and child labour, accelerated by the pandemic, as more people faced poverty.

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