Bridging the Employment Gap in Ageing Asia-Pacific: ILO’s Urgent Call to Action

The ILO's "Asia-Pacific Employment and Social Outlook 2024" report highlights the region's remarkable achievements and ongoing challenges in the labor market. It underscores the pressing impact of rapid aging and calls for inclusive policies to ensure fair work and social justice for all.

As the Asia-Pacific region experiences unprecedented economic growth and social change, the International Labour Organization (ILO) presents a timely and crucial report, "Asia-Pacific Employment and Social Outlook 2024: Promoting Decent Work and Social Justice to Manage Ageing Societies." This report delves into the complexities and challenges the region faces, especially as it navigates the multifaceted issues of rapid economic development, demographic shifts, and social justice.

A Region of Progress and Persistent Challenges

The Asia-Pacific region has made significant strides over the past few decades, notably in reducing working poverty and increasing labor incomes. Yet, as highlighted in the ILO report, substantial challenges remain. Informality, gender inequality, and income disparity are stubbornly persistent, hindering many workers from benefiting fully from the region's economic transformation.

Moreover, Asia-Pacific is aging faster than any other region in the world. Countries like Japan and South Korea are leading this demographic shift, with others like Thailand and Singapore not far behind. This rapid transition from a young to an older society poses unique challenges that require immediate and strategic action.

Key Labour Market Trends: A Mixed Bag

Economic Growth: While robust, the region's economic growth is projected to slow down. Real GDP growth is expected to be 4.4% in 2024, a notable decrease from past decades. This slowdown is more pronounced in East Asia and the Pacific, while South Asia continues to show resilience.

Employment-to-Population Ratio: The employment-to-population ratio is steadily declining, expected to drop from 58.2% in 2023 to 57.4% in 2026. This trend is attributed to the dual pressures of an aging population and declining youth participation in the workforce.

Labour Force Participation: Labour force participation is also projected to decrease, with an anticipated drop of 0.8 percentage points by 2026. The aging demographic and increasing number of older individuals stepping out of the workforce are primary drivers of this decline.

The Ageing Challenge: Economic and Social Implications

Population Ageing: The region is undergoing rapid aging, with the ratio of the population aged 65 and above to those aged 15-64 projected to double by 2050. This shift will significantly increase the economic dependency ratio, placing more pressure on the working-age population to sustain economic productivity and social welfare.

Labour Market for Older Workers: Older workers face significant vulnerabilities, including lower prospects for employment and limited access to training opportunities. Enhancing their labor market prospects is crucial for harnessing their productive capacity and ensuring fair employment practices.

Social Protection: Ensuring adequate social protection for the elderly is a major policy challenge. Many older persons in the region do not receive sufficient benefits from existing pension schemes. Sustainable and equitable financing for national pension systems is imperative to provide income security for the aging population.

Policy Pathways: Tackling the Deficits

Promoting Decent Work: Addressing decent work deficits is essential for advancing social justice and managing the challenges posed by an aging population. This includes reducing income inequalities, promoting formal employment, and eliminating discrimination in the workplace.

Social Dialogue: A collaborative approach involving workers, employers, and governments is necessary to tackle these challenges effectively. Implementing international labor standards and policy initiatives like the Global Accelerator on Jobs and Social Protection for Just Transitions is vital.

Social Protection: Closing social protection gaps, particularly for old-age pensions, is critical. Contributions from both labor and capital incomes should be considered to distribute the cost of social protection fairly across society.

A Call to Action

The ILO's "Asia-Pacific Employment and Social Outlook 2024" underscores that addressing these issues is not just about solving current problems but also about preparing for future challenges. By focusing on decent work, social justice, and inclusive policies, the Asia-Pacific region can navigate its demographic transition more effectively and ensure sustainable development for all its citizens.