Asean must boost productivity to fend off India and China

Asean countries need to increase productivity to maintain their competitive edge or they risk losing their markets to India and China, the International Labour Organisation has warned.
"Between 2000 and 2005, output per worker in Asean grew only 15.5 per cent, compared to 26.9 per cent in India and 63.4 per cent in China," the United Nations agency said in a report that for the first time compiled comprehensive employment and social statistics on the region. The 107-page report - "Labour and Social Trends in Asean 2007: Integration, Challenges, Opportunities" - was produced for the Asean Senior Labour Officials Meeting in Jakarta, which ended yesterday. Noting that the region is dependent on export-oriented industries, the report said that accelerating productivity in Thailand, Brunei, Cambodia, Indonesia, Laos, Malaysia, Burma, the Philippines, Singapore and Vietnam was essential "not only for competitiveness but for job creation and poverty reduction". Balancing economic growth and social development presents a unique challenge. "What matters, therefore, when evaluating labour market trends, is not just the level of employment but also its nature and quality; in other words, decent work," it said. According to the report, employment in Asean increased by more than 11 per cent to 263 million workers between 2000 and 2006, with more than 27 million new jobs being created. At the same time, the Asean regional unemployment rate rose from 5 per cent to 6.6 per cent, with young people being disproportionately affected. However, this figure is slanted by the situation in Indonesia, where unemployment rose from 6.1 per cent to 10.4 per cent. In many other Asean countries, unemployment rates declined or remained stable. Thailand and Singapore are expected to see a labour shortage, which raises questions about how labour migration is managed in these countries and throughout the region, according to the report. Some 55 million more workers will enter the Asean labour force by 2015, with the biggest increases in countries with the largest informal economies and populations of working poor. By 2015, services will be the largest employment sector, accounting for 40 per cent of workers. The urban informal sector is projected to grow significantly. The survey also revealed that more than half of the Asean workforce was still below the poverty level. In 2006, more than 148 million of Asean's 263 million workers did not earn enough to lift themselves and their families above the poverty line of US$2 (Bt69) per person per day. In 2005, the number of migrants originating from Asean was estimated at 13.5 million, 39 per cent of whom were working in other Asean countries. "The large and growing number of irregular migrants means that managing migration and ensuring migrants' protection are becoming pressing issues - a major task that Asean has now taken up with its recent declaration on the protection and promotion of the rights of migrant workers," the report said.
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