Youth employment insecurity has become an increasingly urgent issue in the Asia-Pacific region, with an increasing number of young people trapped in temporary jobs without social security or long-term contracts.
According to the International Labor Organization’s “Global Youth Employment Trends 2024” report, by 2023, more than 28% of youth in Southeast Asia and the Pacific will be engaged in temporary work that lacks economic security and social security.
This situation not only undermines individuals’ financial stability but also has serious implications for the region’s long-term economic prospects.
Global trends highlighted in the ILO report show that temporary employment has been increasing in the region since the early 2000s. Although flexible, these jobs rarely offer long-term contracts, leaving young workers without access to basic benefits such as health care and pensions.
In countries such as Indonesia, the Philippines and Vietnam, the gig economy has further exacerbated the problem by creating flexible but often precarious employment opportunities. According to reports, more than 44% of Indonesian youth work in the informal sector, often without formal contracts, making it difficult for them to obtain financial stability or social protection.
Cultural expectations also contribute to the pressures faced by young people. In many Asian countries, stable employment is seen as a symbol of personal and social success. However, for many young people who find only precarious jobs, this cognitive dissonance can cause psychological stress.
In South Korea and Japan, for example, social pressure to obtain permanent employment has led to growing mental health problems, including significant increases in teen suicide rates.
Technology was initially seen as a gateway to new job opportunities, but it also played a role in amplifying the insecurities of these jobs.
While the gig economy has created new opportunities for young workers, especially in the logistics and transportation sectors (such as Gojek and Grab drivers), these jobs face significant financial risks due to the lack of social security. Many of these workers rely on fluctuating demand, which results in unpredictable income.
However, technology also has the potential for transformative solutions. Blockchain technology and smart contracts are being explored to increase transparency and provide better security for gig workers.
These platforms can ensure that workers receive timely payments and have access to basic social safety nets. Countries such as Singapore are exploring working with technology companies to incorporate these protections into their gig economy frameworks.
Precarious work also creates challenges for social mobility. Youth trapped in temporary or informal work often lack access to skill-building opportunities or continuing education, making it difficult for them to transition to more secure, better-paying jobs.
This exacerbates generational inequality, particularly for lower-income groups. To address this issue, upskilling and retraining programs must be prioritized to ensure youth can transition into sectors with better job security, such as renewable energy and information technology.
At the policy level, Asia-Pacific governments need to strengthen social protection for young workers, including expanding access to health care and pension schemes for those in the informal sector.
Tax incentives for companies that offer long-term contracts to young workers can encourage the creation of more stable jobs in the formal sector. In addition, vocational training and education measures need to be more closely aligned with the needs of the future labor market.
Through a more comprehensive approach – combining public policy, technological innovation and social change – the Asia-Pacific region can create a safer and more inclusive labor market for youth, paving the way for long-term sustainable economic growth.
Setyo Budiantoro is an IDEAS Global Program Fellow at the Massachusetts Institute of Technology (MIT) and a Nexus Strategist at The Prakarsa
