The International Labour Organization (ILO) has released the Asia-Pacific Employment and Social Outlook 2024, highlighting the region’s recovery from the global pandemic and the challenges posed by a rapidly ageing population.
Key Highlights:
Unemployment Rate:
- Projected to remain at 4.2% in 2024 and 2025.
- This equates to 87.8 million people out of work in 2024.
- Unemployment rates vary significantly across subregions and countries.
- The region’s jobs gap in 2023 was 164 million, including individuals unable to work due to care obligations.
Working Poverty and Informality:
- Persistent issues with low-quality, informal employment.
- Two in three workers were in informal employment in 2023, a slight improvement over the past decade.
Demographic Challenges
- The ratio of people aged 65 and above is expected to double by 2050.
- This will increase the economic dependency ratio and pose challenges to sustaining economic growth.
- East Asia will experience a demographic drag on growth of 0.3 percentage points per year.
- South Asia will see a significant decline in its demographic dividend.
Opportunities and Policy Needs
Income Growth and Productivity:
- Potential for continued income growth per capita if productivity growth is maintained.
- Labour productivity in emerging economies is less than a third of that in high-income countries, indicating significant potential for improvement.
- Structural barriers and lack of training opportunities need to be addressed.
Policy Reforms:
- Necessary to reduce inequalities and improve labour market prospects for older workers.
- Equitable pension systems are needed to manage demographic changes.
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Frequently Asked Questions (FAQs):
What is the projected unemployment rate in the Asia-Pacific Employment and Social Outlook 2024 ?
The projected unemployment rate in the Asia-Pacific is expected to remain at 4.2% in 2024, equating to 87.8 million people being out of work.
How many people were unemployed in the Asia-Pacific in 2023?
In 2023, the region had a jobs gap of 164 million, including individuals unable to work due to care obligations, highlighting significant employment challenges.
How does ageing population affect economic growth in Asia-Pacific?
The rapidly ageing population in the Asia-Pacific will increase the economic dependency ratio, creating challenges to sustain economic growth as the proportion of elderly dependents rises.