Unemployment Issue in Asian Countries:

Unemployment continues to be a pressing issue in many countries around the world, including several countries in Asia. The COVID-19 pandemic has only exacerbated this problem, causing a sharp rise in unemployment rates due to economic shutdowns and reduced business activity. According to a report by the International Labour Organization (ILO), the global unemployment rate is expected to reach 5.7% in 2022, which is still higher than pre-pandemic levels.

In Asia, several countries have been grappling with high unemployment rates even before the pandemic. For example, India's unemployment rate reached a 45-year high of 6.1% in 2017-2018, according to a report by the National Sample Survey Office. Similarly, Pakistan's unemployment rate stood at 5.7% in 2019, according to the World Bank.

The COVID-19 pandemic has further worsened the situation in many Asian countries. For example, in the Philippines, the unemployment rate surged to a record high of 17.6% in April 2020, according to the Philippine Statistics Authority. In Malaysia, the unemployment rate reached 5.3% in May 2020, the highest in over a decade, according to the Department of Statistics Malaysia.

Addressing the issue of unemployment in Asia will require coordinated efforts from governments, businesses, and other stakeholders. This may involve implementing policies to stimulate job creation and economic growth, improving access to education and skills training, and providing social safety nets for those who are unemployed or underemployed.

Causes of Unemployment in Asian countries

There are many factors that contribute to unemployment in Asian countries, such as structural changes: The Asian country has undergone a rapid economic transformation in recent decades, shifting from agriculture to industry and services. This has created new opportunities for some workers but also displaced others who lack the skills or education to adapt to the changing labor demand.

Demographic changes: The Asian country has a large and young population, with a high labor force participation rate. However, the supply of labor exceeds the demand, especially for young workers, who face higher unemployment rates than adults. Moreover, some workers are discouraged from looking for work due to social norms or a lack of opportunities.

Cyclical fluctuations: The Asian country is vulnerable to external shocks and domestic crises that affect its economic growth and stability. For example, the Asian financial crisis in 1997–1998 and the global financial crisis in 2008–2009 caused sharp increases in unemployment rates in the region. More recently, the COVID-19 pandemic has disrupted economic activity and trade, leading to massive job losses and reduced working hours.

Consequences of Unemployment in Asian Countries

Unemployment has significant negative effects on individuals, households, and society as a whole, such as poverty and inequality: Unemployment reduces income and consumption levels, increasing the risk of poverty and deprivation. It also widens the gap between rich and poor, as some groups are more affected by unemployment than others, such as women, youth, ethnic minorities, and rural residents.

Social and psychological problems: unemployment erodes self-esteem and confidence, causing stress, anxiety, and depression. It also undermines social cohesion and trust, increasing the likelihood of crime, violence, and social unrest.

Human capital loss: unemployment wastes human potential and talent, as workers lose their skills and experience over time. It also discourages investment in education and training, as workers have lower returns and expectations from their human capital.

Policy responses to unemployment in Asian countries

The governments of Asian countries have implemented various policies and programs to address unemployment, such as active labor market policies: These include measures to improve labor market information, matching, counseling, and placement services; to enhance skills development and vocational training; to promote entrepreneurship and self-employment; and to support labor mobility and migration.

Passive labor market policies: These include measures to provide income support and social protection to unemployed workers and their families; to regulate labor standards and working conditions; and to facilitate social dialogue and collective bargaining. Macroeconomic policies: These include measures to stimulate economic growth and recovery; diversify sources of income and exports; invest in infrastructure and public services; and maintain fiscal and monetary stability. Unemployment is not only a symptom but also a cause of underdevelopment in Asian countries. It hampers economic growth by reducing aggregate demand, productivity, and innovation. It also impedes human development by lowering living standards, health outcomes, and educational attainment.

Furthermore, it threatens social development by increasing poverty, inequality, and instability. To overcome this challenge, the Asian country needs a comprehensive and coordinated strategy that addresses both the demand-side and supply-side factors of unemployment. On the demand side, it needs to create more decent jobs that match the skills and aspirations of its workforce. On the supply side, it needs to improve the quality and relevance of its education system, which prepares its workforce for the future. By reducing unemployment, the Asian country can achieve not only higher economic growth but also more inclusive and sustainable development.

In conclusion, the issue of unemployment remains a significant challenge for many Asian countries, and the COVID-19 pandemic has only worsened this problem. High unemployment rates can lead to various social and economic issues, including poverty, social unrest, and reduced economic growth. Governments, businesses, and other stakeholders must work together to address the issue of unemployment in Asia. This may involve implementing policies to stimulate job creation, providing education and skills training, and creating an enabling environment for businesses to grow and invest in job creation. Investing in social safety nets and providing financial assistance to the unemployed can also go a long way toward reducing the impact of unemployment on individuals and families. As Asia continues to grow and develop, addressing the issue of unemployment will be critical to ensuring inclusive and sustainable economic growth and improving the quality of life for millions of people in the region.

References:

International Labour Organization (2021). World Employment and Social Outlook: Trends 2021 Retrieved from https://www.ilo.org/global/research/global-reports/weso/2021/lang--en/index.htm National Sample Survey Office (2019). Periodic Labour Force Survey (PLFS): Annual Report (2017–2018) Retrieved from http://www.mospi.gov.in/sites/default/files/publication_reports/Annual% 20Report%20of%20PLFS%20%28July%202017%20-%20June%202018%29.pdf World Bank. (2020). Pakistan Economic Update, Fall 2020: In the Wake of COVID-19. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/34711/9781464816447.pdf Philippine Statistics Authority. (2020). Employment Situation in April 2020. Retrieved from https://psa.gov.ph/content/employment-situation-april-2020-results-labor-force-survey-alfs Department of Statistics Malaysia. (2020). Key Statistics of Labour Force in Malaysia, May 2020. Retrieved from https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=156&bul_id=OG9XUzVud UZmdklDZkVJZzMyYVYwQT09&menu_id=U3VPMldoYUxzVzFaYmNkWXZteGduZz09