Labour ministry spokesman Heng Sour said 50 factories across the Kingdom suspended operations in the past few weeks, affecting 20,940 workers. Seventeen of these plants have already resumed operations. POST STAFF
While the International Labour Organisation (ILO) said almost 25 million jobs could be lost worldwide as a result of Covid-19, the government here said the virus will have a minimal impact on employment, except for the tourism and garment sectors.
In a recent press release, the ILO predicted a rise in global unemployment of between 5.3 million (“low” scenario) and 24.7 million (“high” scenario) from a base level of 188 million in last year.
By comparison, the 2008-2009 global financial crises increased unemployment worldwide by 22 million.
It said underemployment is also expected to increase on a large scale, as the economic consequences of the virus outbreak translates into reductions in working hours and wages.
Self-employment in developing countries, which often serves to cushion the impact of changes, may not do so this time because of restrictions on the movement of people and goods.
Falls in employment also mean large income losses for workers. The study estimates these as being between $860 billion and $3.4 trillion by the end of 2020. This will translate into falls in consumption of goods and services, in turn affecting the prospects for businesses and economies, it said.
ILO says working poverty is expected to increase significantly too, as “the strain on incomes resulting from the decline in economic activity will devastate workers close to or below the poverty line.”
Meanwhile, the Garment Manufacturers Association in Cambodia (GMAC) estimates that the recent decision by the European Union to partially withdraw the Everything But Arms (EBA) scheme from Cambodia could harm 750,000 workers and three million families.
Labour Ministry spokesman Heng Sour said 50 factories across the nation suspended operations in the past few weeks, affecting 20,940 workers. These temporary closures were the result of a shortage of raw materials from China as factories there closed due to Covid-19.
Sour said 17 of those 50 factories have resumed operations after China started shipping raw materials to the Kingdom last week.
Ministry of Tourism spokesman Top Sopheak told The Post that so far 41 hotels have closed (temporarily or permanently) in Siam Reap province, amounting to a loss of 2,014 jobs, since the outbreak began.
“We estimate that the number of job losses will increase in the last two weeks of this month because many tourism businesses will close completely as a result of Covid-19,” Sopheak said.
The ILO estimates that between 8.8 and 35 million additional people will be in working poverty worldwide, compared to the original estimate for 2020 (which projected a decline of 14 million worldwide).
“This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people,” said ILO director-general Guy Ryder.
“In 2008, the world presented a united front to address the consequences of the global financial crisis, and the worst was averted. We need that kind of leadership and resolve now,” he added.
