Labor Scarring from COVID-19 Pandemic Disproportionately Affected Youth and Female Workers in Southeast Asia

Strategic Insights -

The COVID-19 pandemic has had a devastating impact on labor markets in Southeast Asia, with youth and female workers being disproportionately affected. According to the Asian Development Bank (ADB), the pandemic led to significant job losses, particularly among young workers, who represented only 10-15% of the workforce in Indonesia, the Philippines, Thailand, and Vietnam, but accounted for between 22% and 45% of job losses at the height of the pandemic. The ADB also noted that female workers were more likely to exit the labor force following job loss, while men were more likely to become unemployed, partly due to a larger share of the care burden falling on women.

Key Takeaways:

  • The COVID-19 pandemic led to a significant jump in unemployment rates in the Philippines, Indonesia, Malaysia, Thailand, and Vietnam, with the Philippines experiencing a 5.2 percentage point increase in its unemployment rate.
  • Young workers in the region accounted for a disproportionate share of job losses, with 22-45% of job losses occurring among workers aged 15-24 in Indonesia, the Philippines, Thailand, and Vietnam.
  • Female workers in the region were also disproportionately affected, with women being more likely to exit the labor force following job loss and men being more likely to become unemployed.
  • The pandemic highlighted significant social protection gaps in the region, with millions of workers without access to health and welfare systems in their host countries.
  • The ADB has called for countries to boost investments in human capital and mobilize domestic resources to build inclusive, sustainable social protection programs and increase social insurance contributions.

Statistics:

  • The unemployment rate in the Philippines increased by 5.2 percentage points to 10.3% in 2020, with 4.5 million jobless Filipinos.
  • Young workers in Thailand accounted for 45% of job losses in the country during the pandemic.
  • Women in the Philippines were more likely to exit the labor force following job loss, with 25% of women aged 25-44 exiting the labor force in the second quarter of 2020.
  • The ADB estimates that at least six million overseas Filipino workers (OFWs) and other migrant workers in the region were heavily affected by the pandemic and its associated restrictions on travel and mobility.

Sources:

  • Asian Development Bank, "COVID-19 and Labor Markets in Southeast Asia: Impacts on Indonesia, Malaysia, the Philippines, Thailand, and Vietnam" (2020)
  • Asian Development Bank, "Women's Economic Empowerment in Asia: A Policy Brief" (2020)
  • Ramesh Subramaniam, ADB Director General for Southeast Asia, statement on COVID-19 and labor markets in Southeast Asia (2020)
  • Ayako Inagaki, ADB Director of Human and Social Development for Southeast Asia, statement on COVID-19 and labor markets in Southeast Asia (2020)