BERLIN, (Reuters) – The global labor market faces a risk of a major change in its recovery to pre-COVID-19 levels due to lockdowns in China as well as the conflict in Ukraine, according the International Labour Organization (ILO), in a Monday report.

According to the U.N., there were 112 million less full-time jobs than pre-COVID. There was also a rising but unknown risk that hours would decrease over the next 2022.

China accounts for 86%. This is despite the fact that containment measures were taken to stem the spread COVID-19. Global supply chain disruptions, exacerbated by war in Ukraine, could lead to further decline.

Guy Ryder, Director General of ILO, told journalists that these figures do not reflect the impact of the Ukraine War.

Although the ILO had warned that the outlook was becoming more cloudy, it now projects there will be an equivalent to 123m fewer full time jobs than in pre-COVID quarters.

Ryder explained that “there is a very real possibility that the next monitoring system, when we create it, will be quoting figures, that will reflect quite a severe deterioration of labour market conditions.”

The ILO stated that rising inflation is mainly caused by supply chain and energy issues and could also stall an economic recovery.

According to the U.N agency, there is little risk that wages will spiral in the immediate future. They also pointed out that in 2021, real wages increased more slowly than before the pandemic.