G20 labor and employment ministers pledged Thursday to prop up the labor market as the COVID-19 pandemic hits jobs and output around the world.

"We cannot allow COVID-19 to widen inequalities, including gender inequalities, in the labor market and erode progress made thus far," the ministers said in a statement after a virtual meeting hosted by the group's current president Saudi Arabia.

"Our countries will continue to explore ways to support businesses and employers, especially micro, small, and medium-sized enterprises, to be able to maintain employment and support affected workers through this challenging period," read the statement.

"Measures will be developed in accordance with national circumstances and may include cash transfers, tax credits, grants, loans, and wage subsidies," it added.

The International Labour Organization on Tuesday warned that the economic consequences of the coronavirus crisis are having a "devastating effect" on workers and employers, with "massive losses" of jobs and output across all sectors.

"The world of work is facing the worst global crisis since World War II," said Alette van Leur, the ILO's sectoral policies director.

"The economic impact of pandemic is likely to be severe and sustained."

But the Geneva-based United Nations agency said that in any lifting of lockdown measures, staff should only return to work if they had proper protection, to prevent recurrences of the pandemic.