The International Labor Organization (ILO) warned that the ongoing crisis in the Middle East is increasingly weighing on global labor markets, threatening millions of jobs, reducing incomes and worsening working conditions far beyond the region, reports Anadolu.

The ILO report said higher energy costs, disrupted trade and transport routes, pressures on supply chains, weakening tourism and migration restrictions are already affecting economies around the world, while risks are expected to intensify if the conflict continues.

Under a scenario in which oil prices rise about 50 percent above their early 2026 average, global working hours could fall by 0.5 percent in 2026 and 1.1 percent in 2027, equivalent to 14 million and 38 million jobs, respectively. full time, according to the report.

Meanwhile, real labor income could fall by 1.1 percent in 2026 and 3 percent in 2027, representing losses of roughly $1.1 trillion and $3 trillion globally.

Sangheon Lee, the ILO’s chief economist and author of the report, said the crisis is becoming “a slow-moving shock and potentially long-term” for workers around the world.

– The most exposed Arab states and Asia
The report identified Arab states and Asia-Pacific economies as the regions most exposed to the consequences due to their dependence on Gulf energy flows, trade routes and labor migration.

In Arab states, working hours could fall by up to 10.2 percent under a severe escalation scenario, exceeding losses recorded during the COVID-19 pandemic, it said. report.

The report also warned that labor migration to Gulf countries has slowed significantly since the crisis began, while remittance flows to South and Southeast Asia are showing early signs of weakening.

The ILO called for employment-focused responses to the crisis, including stronger protections for informal workers, migrants, refugees and small businesses.

Regional tensions in the Middle East have escalated since the US and Israel launched strikes against Iran on February 28, prompting Tehran to retaliate against Israel as well as US allies in the Persian Gulf, along with closing the Strait of Hormuz. The war has disrupted global energy supplies, especially for Asian countries.

Source: prizrenpost