Islamabad, The labor markets in the Asia-Pacific region show signs of recovery from the global pandemic’s impact, yet they confront significant challenges, including a rapidly ageing population that could influence future economic stability. This analysis was presented in the International Labour Organization’s (ILO) report titled “Asia Pacific Employment and Social Outlook 2024,” which calls for inclusive policies to address these emerging demographic trends.
According to United Nations Pakistan, the report finds that while unemployment in the Asia-Pacific is expected to stabilize at 4.2 percent in 2024 and 2025, the job gaps remain large, with significant disparities across different countries and subregions. About 164 million people in the region faced unmet employment needs in 2023, including women hindered by caregiving responsibilities. Additionally, two-thirds of the workforce were engaged in informal employment in 2023, underscoring persistent issues of working poverty despite decades of economic growth.
The demographic shift towards an older population is set to double the ratio of people aged 65 years and above by 2050, which poses substantial challenges to maintaining economic growth due to increased dependency ratios. The report emphasizes that if the region can sustain strong productivity growth, it can continue to see income growth per capita over the coming decades.
Chihoko Asada-Miyakawa, ILO Assistant Director General and Regional Director for Asia and the Pacific, stressed the importance of structural reforms and training opportunities to prepare the workforce for higher productivity roles. She highlighted the need for equitable labor market practices and pension systems to manage the demographic changes effectively.
The report also calls for robust social dialogue involving workers, employers, and governments to tackle these complex issues and suggests that initiatives like the Global Accelerator on Jobs and Social Protection for Just Transitions are vital for promoting social justice in the region.