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World – Covid-19 pandemic led to more than 1 billion losing their jobs or businesses

05 May 2021

The global Covid-19 pandemic has damaged more than a billion people's livelihoods in its wake, according to Gallup surveys in 117 countries and territories.

The survey data from Gallup found that at least some percentage of workers in all countries and territories stopped working temporarily, lost their jobs, worked fewer hours or earned less than usual because of the pandemic, but people in lower-income countries with large informal economies suffered on the largest scale.

Gallup asked people about the effect of the coronavirus on their livelihoods in the second half of 2020. By that time, much of the world was through the first wave of the global pandemic and prepping for a second, but all countries were at different stages.

The negative economic effects were felt far and wide, according to the survey. Globally, nearly one in three people who had jobs at the time of the pandemic (32%) said they lost their job or business because of the coronavirus situation, translating into just over 1 billion adults.

The percentages of people who lost their jobs or businesses ranged from a high of 64% in the Philippines and Kenya to a low of 3% in Switzerland.

A least half of workers in eight mostly low to lower-middle income countries lost their jobs or businesses because of the pandemic. This includes 53% of workers in India, which suffered more than any other country in the world in terms of the total number of people who lost their livelihoods. An estimated 400 million Indian workers lost their jobs or businesses. For comparison, in the US, 13% said they lost their job or business, or about 30 million people.

Meanwhile, temporary layoffs and business closures skyrocketed as many countries went on lockdown to control the spread of the coronavirus. More than half of workers, or 53%, worldwide said they temporarily stopped working at their job or business because of the Covid-19 pandemic. Projected to the global population, this translates into roughly 1.7 billion adults.

The percentages of workers who stopped working temporarily ranged from a high of 79% of workers in Zimbabwe to a low of 6% in Germany.

The countries and areas where people were least likely to say they stopped working temporarily are predominantly developed, high-income countries and areas. For example, fewer than one in 10 of those who had jobs in Austria (7%), Switzerland (7%) and Germany (6%) said they had stopped working temporarily. The US fell closer to the middle of the pack at 39%.

Worldwide, the survey data found that workers saw their hours slashed as employers tried to lower costs and avoid layoffs in 2020. Nearly half of those who had jobs during the pandemic last year (49%) said they worked fewer hours at their job or business because of it. This translates into about 1.6 billion adults.

Globally, half of those with jobs at the time of the survey (50%) said they received less money than usual from their employers because of the Covid-19 pandemic.

“At a minimum, these results outline the scope of the impact that the Covid-19 pandemic had on people's livelihoods around the world,” the survey stated. “Workers in all countries were affected to some degree, but particularly those in low-income countries will find recovery more difficult.”