News Excerpt:
The International Labor Organisation (ILO) has released the Asia-Pacific Employment and Social Outlook 2024.
About the report:
- Asia-Pacific Employment and Social Outlook is released annually by ILO.
- This is the fifth edition of the report.
- It pulls together the most recent statistics to depict the state of the labor market and its impact on the 3.4 billion people living in the Asia-Pacific region.
- The 2024 report examines the implications of population aging for labor markets and society.
Key Findings of the report:
- Stable Labor Market Amid Subdued Growth: Employment in Asia and the Pacific is projected to grow at its long-term average rate, with unemployment remaining nearly unchanged.
- Gender Inequality in Employment: Women's employment rates are significantly lower than men's, particularly among youth, where young women are almost three times more likely to be NEET (not in employment, education, or training).
- Low Overall Unemployment, High Youth Unemployment: The region's unemployment rate is low (4.2%in 2023) as compared to the global unemployment rate, but youth unemployment remains high at 13.9%.
- Need for Stronger Labor Market Performance: Widespread decent work deficits persist, with slow progress in reducing informality and working poverty.
- Unequal Productivity Growth: From 2004 to 2021, productivity growth led to increased labor income, but this growth was uneven across countries. Most workers remain far from the labor income levels of high-income countries.
- Declining Productivity and Income Growth: Over the past decade, growth rates for labor productivity and income have declined. Enhancing productivity requires revitalizing structural transformation and investing in physical and human capital and technological progress.
- Insufficient Decent Work Opportunities: The lack of job opportunities that meet decent work criteria threatens social justice and the labor market outlook in the region.
Labor force participation in the region:
- The region’s labor force participation rate (LFPR) fell from 67.0 per cent in 1991 to 60.9 per cent in 2023 and is projected to decline further over the coming years.
- Increased educational attainment and aging populations are among the main drivers of declining LFPR. However, the employment levels in absolute numbers have been steadily growing, reaching 2 billion in 2023.
- LFPR in South Asia is 54%, 63 % in the Pacific and 66 % in East and South-East Asia. South Asia’s low aggregate LFPR is largely due to a significant gender gap: 77% for men and 31% for women.
Challenges highlighted by the report:
- Aging population: The rate of population aging in Asia and the Pacific is alarming. The region’s population is projected to age as much over the next 27 years as the populations in high-income countries worldwide have aged over the past 60.
- Rise in dependency ratio: The economic dependency ratio, defined as the ratio of those not employed to those employed among the region’s working-age population (aged 15 years and above), is projected to rise from 0.72 in 2023 to 0.90 in 2050.
Policy implication for Promoting Full and Productive Employment and Decent Work suggested in the report:
- Remove Employment Barriers: Address job gaps and gender disparities by easing unpaid care burdens and enhancing access for women and disadvantaged groups.
- Support Disadvantaged Groups: Implement programs for young people, older workers, and persons with disabilities to improve their employment prospects and social justice.
- Facilitate Migration: Manage migration to benefit both origin and destination countries, leveraging migrants' typically higher employment rates.
- Enhance Labor Productivity: Invest in technology and skills to boost productivity and support structural transformation, essential for economic growth and higher labor incomes.
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International labor Organization (ILO)
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