EMPLOYMENT
SMALL ENTERPRISES SUFFER BIG IMPACT FROM SLOWDOWN
Insecurity and volatility deal massive blows to the delivery of SDG 8. Over 200 million people are currently unemployed, says the International Labor Organization By Başak Pamir, OPEC Fund
W ithout decent work opportunities and inclusive sustainable economic growth, people around the world are not able to maintain livelihoods and improve living standards for themselves or their families. SDG 8 calls for opportunities for full employment and decent work for all, alongside the eradication of forced labor, human trafficking and child labor, and the promotion of labor rights and safe and secure working environments. Even before the outbreak of the COVID-19 pandemic and the war in Ukraine, one in five countries were likely to see per capita incomes decline in 2020, according to the UN. Now, the economic and financial shocks associated with the pandemic (such as disruptions to industrial production, financial market volatility, and rising insecurity) and the economic consequences of the ongoing war are hindering the already sluggish global economic growth and affecting millions of jobs around the world. As a result, progress towards achieving SDG 8 is likely to have suffered one of the biggest setbacks among all 17 SDGs. Recent data shows that although the global economy began to rebound in 2021, bringing some improvement in unemployment, recovery remains
Unemployment rate, 2019-2021 (percentage)
4.6
5.3
Least Developed Countries
5.6
4.6
Landlocked developing countries
5.5
5.7
6.3
Small island developing states
7.2
7.6
2019
5.4
6.6
World
2020
6.2
2021
0% 2%
4%
6% 8%
Source: UN Sustainable Development Goals Report 2022
Nine out of ten jobs created by SMEs “A number of the global development goals are very closely linked to small and medium-sized enterprises,” says Matthew Gamser, CEO of the SME Finance Forum, a global network to expand access to finance for small and medium-sized businesses managed by the International Finance Corporation (IFC). “I think there’s more widespread
elusive and fragile. Recovery also significantly varies among regions and countries. While developed economies are recovering more quickly, the least developed countries are struggling with weak growth and rising unemployment. Over 200 million people around the world are currently estimated to be unemployed, according to the International Labor Organization (ILO).
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