A report by the International Labour Organisation (ILO) has stated that income losses for informal economy workers are likely to be massive due to Covid 19 and the resulting lockdown. ILO estimates show that earnings for informal workers are expected to decline in the first month of the crisis by 60% globally, 28% in upper-middle-income countries, 82% in lower-middle and low-income countries and 76% in high-income countries.
The relative poverty rate of informal workers for lower middle and low-income countries is expected to go up from 18% before Covid 19 to 74% in the first month of the crisis. Interestingly, the highest growth in relative poverty among informal workers is expected to be in high income countries where it is likely to go up from 28% before Covid 19 to 80% within the first month of the crisis.
These and some other interesting statistics related to the impact of Covid 19 were revealed in a report by the ILO. The report titled ILO Monitor: COVID 19 and the world of work (Third Edition) states that 1.6 billion informal economy workers, the most vulnerable in the labour market, have been significantly impacted by lockdown measures and/or working in the hardest-hit sectors.
The first month of crisis is estimated to result in a 60% decline in earnings of informal workers globally with Africa and Latin America seeing the largest decline, the report states.
The report said that more than 2 billion people worldwide work in the informal economy in jobs that are characterized by a lack of basic protection, including social protection coverage and have no possibility to work remotely from home.
As of 22 April 2020, close to 1.1 billion informal economy workers live and work in countries in full lockdown, and an additional 304 million in countries in partial lockdown. It further states that among informal economy workers significantly impacted by the crisis, women are over- represented in high-risk sectors (sectors that are severely impacted by COVID 19).