Investing in job-rich growth, social protection and a just transition to a net-zero emissions future, particularly in low -and middle-income countries, could prevent a further deepening of the inequalities between developed and developing economies that have been exacerbated during the COVID-19 pandemic, said UN Secretary-General, António Guterres, in a policy brief issued today.
At least US$982 billion in fiscal stimulus measures is needed to respond to the immediate labour market shocks of the crisis and to support a just transition, as well as US$ 1.2 trillion annually for social protection floors in low- and middle-income countries. No advanced economy has achieved economic and social progress without investing in social protection systems and quality public services that provide people with the necessary support to navigate the vicissitudes of their lives.
While the wealth of billionaires increased by over US$ 3.9 trillion between March and December 2020, the impact of the pandemic on the world of work, among other factors, increased the number of extremely poor by between 119 and 224 million people—the first increase in poverty in over 21 years.
- An estimated 8.8 percent of total working hours - equivalent to the hours worked in one year by 255 million full-time workers - were lost in 2020.
- This corresponds to a loss of US$3.3 trillion in labour income before government support.
- Because of the pandemic, there are an estimated 75 million fewer jobs in 2021 than there were before the crisis, and 23 million fewer projected in 2022.
The Secretary-General’s brief calls for urgent investments in a job-rich, sustainable and socially inclusive recovery. The public and private sectors should leverage finance to significantly ramp up such investments to get the world back on track to achieve the Sustainable Development Goals and to address ever increasing risks from climate change and environmental degradation that could jeopardize 1.2 billion jobs—equivalent to 40 percent of the global labour force.
A human-centred recovery from the pandemic needs employment and social protection policies to work in tandem, not only to improve people’s living standards, but also to help them navigate the challenges of a rapidly changing world of work and the transition towards the goal of net zero carbon emissions by 2050.
Accelerating job creation
To achieve a job-rich recovery and a just transition to a sustainable and inclusive economy, the Secretary-General is calling for a Global Accelerator for Jobs and Social Protection that would create at least 400 million jobs and extend social protection to 4 billion women, men and children currently without coverage.
To achieve this Goal, the Policy Brief entitled “Investing in Jobs and Social Protection for Poverty Eradication and a Sustainable Recovery” recommends several actions:
- Develop integrated national and inclusive recovery strategies for decent job creation, especially in the care and green sectors, universal social protection, and a just transition, and ensure they are aligned with macro-economic and fiscal policies and underpinned by sound data.
- Expand investment in Social Protection Floors as a percentage of GDP in national budgets.
- Design policy measures to extend social protection to workers in the informal economy, and to foster the progressive formalization of enterprises and employment, including in the care economy.
- Create active labour market policies to help workers upskill and re-skill to keep or change their job, adapt to the green and digital transitions.
- Develop a sound financial architecture to mobilize investments for decent jobs, social protection, and a just transition, including by channelling SDRs to support national recovery strategies to countries in need.
- Strengthen collaboration with the private sector to scale-up investments in strategic sectors to promote entrepreneurship, effectively reaching women and women-owned enterprises in particular, to close the skills gap
- Align strategies with the Paris Climate Accords, so that they support enterprises and workers, while also ensuring that vulnerable populations are not left behind in the transition to net-zero carbon emissions economies.
High-level Event on Jobs and Social Protection for Poverty Eradication
The UN Secretary-General will present the brief at a virtual high-level meeting at the UN on 28 September 2021, 09.00 -12.00 ET (15.00-18.00 CEST). The meeting is convened jointly with the ILO.
Leaders from countries, along with the heads of major international organizations, multilateral banks and finance institutions, civil society, private sector and academia will discuss pathways
The High-Level Meeting on Jobs and Social Protection for Poverty Eradication will feature the UN Secretary-General delivering opening remarks, followed by Jamaican Prime Minister Mr. Andrew Holness as co-convener of the Financing for Development in the Era of COVID-19 and Beyond Initiative (FfDI), and Mr. Guy Ryder, Director-General, International Labour Organization. After, a moderated discussion will take place with Heads of the International Financial Institutions, Heads of States and Government and international organizations.
The Deputy Secretary-General Amina Mohammed will provide closing remarks.
The meeting is being organized under the aegis of the Financing for Development in the Era of COVID-19 and Beyond Initiative (FfDI) with the support of ILO.