Statement by Guy Ryder - 102nd Meeting of the Development Committee - policy priorities for rebuilding better

Jul 19, 2026

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Statement by Guy Ryder, Director-General of the International Labour Organization, delivered at the 102nd Development Committee meeting (virtual) on October 16, 2020, focuses on COVID-19’s labour-market damage. Workplace closures are linked to massive working-hour losses and a global job equivalent of 495 million lost jobs in Q2 2020. Unemployment and especially inactivity rise, with employment declines greater for women than men. The document estimates major labour-income losses, increasing poverty, and a fiscal stimulus gap of about US$982 billion in low-income and lower-middle-income countries, arguing for stronger, fairer, and more coordinated policy action.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

AccessFree to download

Summary

Labour-market disruption and job losses

Labour income losses and poverty trends

Fiscal stimulus gap and international solidarity

“Building back better” policy priorities

Economic and social outlook

Global uncertainty and rising inequality

Economic impacts across country groups

Higher levels of unemployment and inactivity

Working-hour losses by quarter

Inactivity as a policy challenge

Unequal employment impacts, especially for women

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND TWO MEETING WASHINGTON, DC –OCTOBER 16, 2020 (VIRTUAL) DC/S/2020-0041 October 16, 2020 Statement by Guy Ryder Director-General International Labour Organization Statement by Guy Ryder Director-General International Labour Organization 102nd Meeting of the Development Committee October 16, 2020 Washington, DC (VIRTUAL) Summary • Workplace closures continue to disrupt labour markets around the world. As a result, the equivalent of 495 million jobs were lost globally in the second quarter of 2020 relative to the fourth quarter of 2019. • Working-hour losses due to workplace closures are reflected in higher levels of unemployment and inactivity, with inactivity increasing to a greater extent than unemployment, thus posing an even greater employment challenge. In addition, the decline in employment is greater for women than for men inmost countries. • These trends translate into substantial losses in labour income with an estimated global decline of 10.7 per cent during the first three quarters of 2020 (compared with the corresponding period in 2019), which amounts to 5.5 per cent of GDP. As a result, poverty levels are increasing. Income support measures for vulnerable and hard-hit groups should be a policy priority. • The impact of the fiscal stimulus measures on employment has been positive but uneven. In highincome countries, the announced fiscal stimulus measures equate to 10.1 per cent of total working hours, while estimated working-hour losses averaged 9.4 per cent. In low-income countries, the stimulus is equivalent to only 1.2 per cent of total working hours, while working-hour losses averaged 9 per cent. This “fiscal stimulus gap” is therefore around US$982 billion in low-income and lowermiddle-income countries. Filling this gap requires greater international solidarity while improving the effectiveness of stimulus measures. • In “building back better” in the recovery to the crisis, and restoring progress towards attaining the UN’s Sustainable Development Goals (SDGs) by 2030, urgent priority should be devoted to: o strengthening measures and policies to reduce poverty and inequalities and ensure a fair share of the fruits of progress to all; o making access to adequate social protection for all a reality, strengthening delivery systems and mobilising resources from diverse sources to finance those systems; o significantly boosting public and private investment in women and men – their economic opportunity, productivity and security – in a coordinated effort; o increasing investment in employment-intensive sustainable infrastructure – both physical and social – and sustainable enterprise, including digital infrastructure and green technology. Economic and social outlook The global economic and social outlook is shrouded in uncertainty, but we know that the world will be much poorer than it would have been without the virus. Global income could be USD 7 trillion lower by the end of 2021 than what the OECD projected less than a year ago in November 20191. The world will also be more unequal. The pandemic has, in many cases, exacerbated pre-existing inequalities, accelerating trends already in place2. The COVID-19 pandemic has had a more negative impact on economic activity in the first half of 2020 than anticipated and the recovery is projected to be more gradual than previously forecast3. The downturn in 2020 affects both advanced economies and emerging market and developing economies. Over 95 percent of countries are projected to have negative per capita income growth in 2020 according to IMF forecasts. The cumulative hit to GDP growth over 2020–21 for emerging market and developing economies, excluding China, is expected to e

FAQs

What does the statement identify as the main labour-market effect of workplace closures during 2020?

Workplace closures disrupt labour markets globally, producing large working-hour losses and job equivalents. In Q2 2020 the losses are estimated at 17.3% of total working hours, equivalent to 495 million jobs versus Q4 2019.

How are unemployment and inactivity expected to change, and why does inactivity matter?

Working-hour losses contribute to higher unemployment and inactivity, with inactivity increasing more than unemployment. The statement highlights inactivity as harder to reverse than unemployment, requiring stronger policy attention.

What is the “fiscal stimulus gap” mentioned, and what does the statement propose to address it?

The impact of fiscal stimulus is positive but uneven, creating a gap estimated at around US$982 billion in low-income and lower-middle-income countries. Closing it requires greater international solidarity and improving the effectiveness of stimulus measures.

Jul 19, 2026

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