Asia-Pacific labor markets recover, 87.8 million people out of work: Report

The Asia-Pacific labor markets have recovered well since the COVID-19 pandemic but are still facing multiple challenges, including the region’s rapidly aging population, according to the latest report from the International Labour Organisation (ILO). The ILO’s Asia-Pacific Employment and Social Outlook 2024 revealed that unemployment in the Asia-Pacific labor market will remain stable at 4.2 percent in 2024 and 2025. This is equivalent to 87.8 million individuals out of work in 2024.

Informal employment persists

While the unemployment rate for the region remains below pre-pandemic levels, significant variations have emerged between subregions and countries. The region’s jobs gap amounted to 164 million in 2023. The Asia-Pacific labor markets are still facing persistent issues including working poverty and informality, with a substantial proportion of workers seeking low-quality informal employment despite decades of economic growth. In 2023, two-thirds of all employees were working in informal positions, a 2 percent improvement in the last 10 years.

Rapid population aging

In addition, the Asia-Pacific region is undergoing rapid population aging, with the ratio of people above 64 expected to double by 2050. Regionally, East Asia is projected to see the largest demographic decline of 0.3 percentage points per year while South Asia is expected to see its demographic dividend decline significantly too.

“The Asia-Pacific region may be aging rapidly but it is not going to run out of workers. There is, however, an urgent need to ensure that those looking for decent work can access the training and opportunities they need,” said Chihoko Asada-Miyakawa, ILO assistant director-general and regional director for Asia and the Pacific.

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Outlook remains positive

Despite the aging population, the Asia-Pacific labor markets should continue to grow if it maintains strong productivity growth. This will lead to an increase in income per capita over the next decades. However, labor productivity remains below a third of that in high-income countries in multiple sectors. This highlights the potential for efficiency and income gains.

To overcome these challenges, the Asia-Pacific labor markets need to overcome structural barriers and the lack of training opportunities. This will support the decline in informal work and unemployment as workers transition into better jobs with higher productivity and pay.

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