ADB book says half a billion Asians unemployed or underemployed

28 Apr '06

3 min read

ADB (Asian Development Bank) announces that at least half a billion people in developing Asia are unemployed or underemployed and finding ways to provide them productive jobs should top economic agendas around the region, according to 'Labor Markets in Asia: Issues and Perspectives', an ADB book launched.

Asia has made significant progress in reducing poverty over the last two decades. But almost 1.9 billion Asians still survive on less than $2 a day.

There are many causes of poverty, but in the final analysis poverty exists because people are either unable to find work or earn too little from the work they do, according to the book.

Out of a total labor force of around 1.7 billion, at least 500 million people in the region are unemployed or underemployed on conservative estimates, the book notes, and some 245 million people are expected to join Asia's labor market over the next decade.

The challenge of generating jobs in many countries is particularly acute in the formal sector where employment entails higher earnings, a degree of job security, and social benefits.

The share of formal employment in many Asian countries has declined or stagnated in recent years despite economic growth.

There are two dimensions to this phenomenon. First, agricultural employment, which tends to be overwhelmingly informal, has been slow to decline as a share of total employment in a number of countries, especially in South Asia. In India, for example, agriculture continues to account for a majority of total employment in the country.

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