MONASH BUSINESS MALAYSIA
“ To workers of the future: enjoy the journey, be equipped with knowledge and resilience, and may each step forward remind all of us that we are still learning. The future of work rests upon us.” e
KEY CHALLENGES IN THE
ASEAN
LABOUR MARKET
BY DR EUNBI SONG Senior Lecturer
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Dr Eunbi Song
ASEAN is poised to become the fourth largest economy in the world by 2030 in tandem with its economic upswing and increasing global influence. However, several structural features of the current ASEAN labour market present challenges to inclusive and sustainable growth.
1. Skills mismatches: A persistent gap between the skills that workers possess and those demanded by employers is pronounced in many ASEAN member countries. This suggests that the labour market is struggling to absorb graduates with higher education, leading to inefficient use of human capital, or that the education system as a whole may not be equipping students with the skills most valued by employers. Consequently, mismatched graduates often face wage penalties and unemployment.
2. High rates of youth unemployment: A large share of young people( ages 15 – 24) in Southeast Asia are classified as Not in Employment, Education, or Training( NEET); they are neither gaining labour market experience nor building relevant skills. High NEET rates point to structural issues including early school leaving, a shortage of decent jobs, weak career guidance systems, and a lack of targeted training for young people( ISEAS, 2021).
3. Labour mobility: Within ASEAN, labour mobility remains relatively limited. Although there are around 6.5 million intra-regional immigrants( mostly lower-skilled workers across the region), high-skilled worker mobility is restricted by immigration policies, divergent professional standards, and limited recognition of qualifications across ASEAN countries.
For ASEAN to continue strengthening its position on the global stage, all stakeholders – from governments to academia and businesses – will need to collectively and holistically address these issues.
“ As a well-known proverb goes, if you want to go fast, go alone. If you want to go far, go together.” e