Four out of five workers worldwide – that’s around 2.7 billion jobs – have had their workplace fully or partly closed by the coronavirus pandemic, and many people have been furloughed or lost their jobs.
Governments worldwide are working on trying to stem the flow of job losses with wage replacement and other programs to help avoid unemployment and keep people at work. Click or scroll through as we look at how successful, or not, they have been.
Countries With Most job losses Due To Coronavirus 2020
10.Iceland: 2.2% of jobs lost
At the end of March, 17,500 people in Iceland had been temporarily laid off, while another 4,500 were permanently out of work. With only 201,000 people in employment, this is nearly 2.2% of Icelandic jobs.
More than half these jobs are in tourism: tour companies and hotels, including Radisson Blu, have sent people home, while Icelandair laid off 2,000 workers. As a safety net, the government pays 75% of furloughed workers’ wages to help prevent business closures and further job losses. Iceland’s unemployment rate in March was 3.3%.
9.Australia: 2.3% of jobs lost
According to research by the Guardian Australia, shedding nearly 300,000 jobs by April alone, around 2.3% of the 13 million people employed in Australia in January are now unemployed.
The hospitality sector has lost the vast majority of jobs with restaurants and hotels closed. To help mitigate the economic damage, the government launched a program for affected businesses to pay staff AU$1,500 (US$1k/£805) each fortnight. It has also raised the partner income cap on unemployment benefits, allowing more people to apply. The country’s unemployment rate is up to one percentage point to 6.2%.
8.Netherlands: 3.6% of jobs lost
From 15 March, the Dutch government closed all bars, restaurants, museums and other businesses. The hospitality and tourism industries have seen the most drastic job losses during the pandemic.
The country’s federal employment agency paid benefits to 37,800 new unemployed people in March this year. Statistics Netherlands announced that the country had seen 283,000 job losses in that month, the equivalent of 3.6% of the 7.9-million-person workforce.
However, others are being paid through a government wage subsidy, and companies that lose at least 20% of their turnover can apply for up to 90% of their payroll, preventing permanent layoffs.
7.Israel: 6.3% of jobs lost
With four million people in employment at the start of the year, the number of people laid off or unpaid leave accounts for nearly a quarter of the Israeli workforce, one of the highest worldwide. Aviation and tourism have taken a significant hit from lockdown measures.
Around 25,000 hotel staff are laid off or on unpaid leave, and airline El Al has laid off at least 1,000 workers – a number likely to increase. According to the National Employment Service, of those seeking state support, 6.3% have been laid off, and 89.8% are unpaid. Before the pandemic hit, Israel reported a record low unemployment rate of less than 4%, but this is now set to rise.
6.UK: 7.5% of jobs lost
Of the UK’s 27.9 million workers, a quarter is currently not working, just slightly higher than in the US. At least 6.3 million people are on furlough, with the government paying 80% of wages up to £2,500 ($3k) per month. Food and drink firms are large benefactors of the program, with McDonald’s UK furloughing 135,000 workers and major pub chains Greene King and Wetherspoons a combined 81,000.
At the end of March, a study by YouGov found that 5% had permanently lost their jobs, but 2.1 million people have applied for unemployment benefit, the equivalent of 7.5% of the population’s workforce. Research by the Institue for Social and Economic Research at the University of Essex predicts that there could be as many as 6.5 million job losses from the crisis. The UK’s low unemployment rate, currently at 3.9%, may soon increase almost six times.
5.Russia: 14% of jobs lost
President Vladimir Putin mandated workers would have a month off, paid, during April as part of lockdown. However, companies without the cash to cover wages made layoffs. Government forecasts expect roughly 10 million Russians will have lost their job, 14% of the 71.9 million people employed.
Russia’s economy is also at risk due to its reliance on selling gas and oil, which have seen prices fall dramatically. Suppose oil prices don’t recover and remain at $35 per barrel, it has been estimated that the Russian economy could decline by 4-6%. Unemployment at 4.7% currently remains steady.
4.Austria: 14% of jobs lost
The lucrative ski season came to an abrupt end in Austria when resorts became coronavirus hotspots. Lockdown hit Austria’s Tyrol province especially hard with unemployment, by nearly 200%, compared to 39% in the capital Vienna.
The government has a Kurzarbeit – a short-term working scheme – to cover 80-90% of wages. Some 638,000 people had applied for that assistance, with the majority in the tourism, hospitality, retail and construction sectors, while 504,000 registered as unemployed, 14% of the 3.6-million-strong workforce.
3.Canada: 15% of jobs lost
Canada’s 18.8-million-strong workforce has seen an unprecedented decline, with 15% of jobs affected. That’s three million jobs, while another 2.5 million workers have reported working less than half their usual hours.
Closing non-essential businesses as part of lockdown have affected retailers, while border closures have taken a toll on airlines, including 16,500 furloughs for Air Canada and 6,900 jobs lost at WestJet. The government is paying 75% of wages for businesses affected by COVID-19, while the unemployment rate has more than doubled to 13% in April.
2.US: 24.7% of jobs lost
Furloughed American workers can now collect unemployment, along with those permanently laid off, as part of the country’s stimulus package, and tens of millions have filed for it.
Disney furloughed more than 40,000 workers, Best Buy some 50,000, and Macy’s announced most of its 125,000 staff would be sent home. Nearly 39 million Americans have lost their jobs in this global crisis, nearly 25% of the 157.7 million people employed in the US.
1.India: 25% of jobs lost
Since March, unemployment in India has run rampant across cities while the agriculture sector, deemed essential, remains strong. Lost jobs account for around a quarter of India’s nearly 500-million-strong workforce, although more than 40% of the population is employed in agriculture.
Small businesses and labourers account for 91.3 million of the layoffs, while 17.8 million are salaried and another 18.2 million are self-employed. With a record-high unemployment rate of 8.7% at the start of lockdown, it has since grown to a huge 23.5%.
Source: | Love Money