| Statistical Yearbook for Asia and the Pacific 2007 |
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| 15 - Employment |
| The strong economic expansion that the Asian and Pacific region has experienced since the beginning of the new millennium has not been met by comparable dynamism in labour demand.
Employment has grown at an average annual rate of 1.5 per cent over the past 15 years, with little variation. This rate compares unfavourably with other developing regions, in which employment has grown at nearly double the pace of Asia and the Pacific since 1991. For example, in Africa the annual rate is 2.8 per cent, and in Latin America and the Caribbean it is 2.5 per cent.
Figure 15.1 Index of change in the employment level for the regions of the world, 1991-2006
The total number of workers in least developed countries, landlocked developing countries and small island developing States has increased four times as rapidly as in high-income countries during the last 15 years. This is in line with evidence that when the economy grows and per capita income rises, the average annual growth rate of employment drops. Between 2000 and 2005, the four highest growth rates - all above 5 per cent - were found in Afghanistan, Bhutan, Maldives and Timor-Leste, all of which are least developed countries.
Labour demand in the ASEAN and SAARC regions has also expanded rapidly, at about 2 per cent between 1991 and 2006. Central Asian countries, on the other hand, experienced a moderate overall growth during the same period, at 1.3 per cent, as a result of poor performance in the 1990s. In Armenia, Georgia and Kazakhstan, for instance, employment contracted over the last 10-15 year period. Most of the growth in employment in this subregion has taken place during the last six years, when many Central Asian countries expanded rapidly.
Figure 15.2 Index of change in the employment level in selected Asian and Pacific country/area groupings, 1991-2006
Two main, partly interrelated, factors explain the relative weak employment growth in Asia and the Pacific: a large structural adjustment in the sectoral composition of employment and an impressive long-term increase in labour productivity.
Data on the sectoral composition of employment in Asia and the Pacific is patchy. From the data that is available, though, it is clear that the share of employment in agriculture has declined over the past 15 years in countries as diverse as those that are members of ASEAN and those that belong to the high-income group, whereas employment in industry and, especially, services increased.
This movement of workers from low to higher productivity activities has, by itself, caused an increase in the value added per worker. The other driving force behind the remarkable growth in labour productivity is a large accumulation of machinery and equipment and the introduction of new technologies. This shift from labour-intensive to capital-intensive production processes in the Asia and the Pacific has allowed for a substantial expansion of output with only a moderate increase in the number of workers, especially in the manufacturing sector.
Asia and the Pacific experienced the highest growth in labour productivity between 2000 and 2005, by 5.4 per cent. Africa had the second highest growth rate, at 1.8 per cent, followed closely by North America and Europe. Labour productivity in Latin America and the Caribbean, on the other hand, grew by a scant 0.5 per cent during the same period. Within Asia and the Pacific, Central Asian and landlocked developing countries had the highest growth in labour productivity, at about 7 per cent, but labour productivity in small island developing States grew at only 2.3 per cent.
Figure 15.3 Labour productivity increase in selected Asian and Pacific country/area groupings, 2000-2005
There is limited data on unemployment. In 2004, the unemployment rate in Asia and the Pacific was 5.8 per cent. In the same year, North America had an unemployment rate of 5.7 per cent, and Europe maintained a high rate of 9.2 per cent. Low-income and high-income countries have lower unemployment rates than middle-income countries.
Figure 15.4 Unemployment rate in selected Asian and Pacific country/area groupings, North America, and Europe, 2004
In the absence of complete unemployment data, the employment to working age population ratio can shed some light on labour market dynamics. While the demand for labour has not increased, the "potential" labour supply in Asia and the Pacific continues to grow. The data need to be interpreted with caution, however, as a fall in this ratio may also mean that more young people (aged 15-24) stay in school.
Over the last 15 years, the employment to population ratio has declined by about 4 percentage points in the Asian and Pacific region, whereas it has only marginally decreased in Africa, and increased by 2 percentage points in Latin America and the Caribbean. Least developed countries and the SAARC region have experienced declines of over 3 percentage points, whereas landlocked developing countries and small island developing States have experienced smaller declines, by less than 1 percentage point.
Figure 15.5 Employment to population ratio in selected Asian and Pacific country/area groupings, 1991-2006
This reduction has affected most countries in Asia and the Pacific. A few countries and areas, however, have seen a considerable increase, by over 7 percentage points, in the employment to population ratio, such as in Maldives and in Macao, China, both with over 15 per cent economic growth in 2006. Overall, the employment to working age population ratio in Asia and the Pacific is still higher than in any other region in the world.
Asia and the Pacific has the second highest ratio of working age women employed, 48.9 per cent, behind only North America, 53.9 per cent (in 2006). The lowest ratio of employed to working age women - 42.1 per cent - is recorded in Europe. When it comes to men of working age, Africa and Europe have about 75 per cent employed, followed closely by Latin America and the Caribbean. In Asia and the Pacific, the figure is just above 70 per cent.
The SAARC region is an exception in Asian and Pacific region with regard to the ratio of employed to working age women; whereas in other parts of Asia and the Pacific, half or more of the women of working age are employed, this is not the case in the SAARC region, where the ratio has gradually fallen, reaching 34 per cent in 2006. In such countries as Afghanistan, India, Pakistan and Sri Lanka, the ratio of employed to working age women is 30 per cent or only slightly above.
Figure 15.6 Employment to population ratio by gender for the regions of the world, 2006
Figure 15.7 Employment to population ratio by gender in selected Asian and Pacific country/area groupings, 2006
The women to men employment ratio demonstrates the gender-bias in employment even more vividly. In Asia and the Pacific, this ratio has declined slightly, to 64 per cent in 2006 compared with 66 per cent in 1990. The region is ahead of only Latin America and the Caribbean, which registers a ratio of 60.8 per cent. Africa, with 66 per cent, is the leading developing region in equal gender participation in the labour market. Europe and North America fall short of equality but still have ratios that are quite high, at 78.4 per cent and 84.9 per cent, respectively.
Among groups of countries within the Asian and Pacific region, the highest women to men employment ratio occurs in Central Asia, at 85.5 per cent. In the SAARC region, this ratio is about 40 per cent, reiterating the low level of employment among women in the countries of this region. The middle-income countries in Asia and the Pacific record the highest women to men employment ratio, approaching European figures. The high-income countries follow closely, at just above 70 per cent, whereas low-income countries remain far behind, at about 46 per cent.
The limited available data shows that women are underrepresented in non-agricultural activities, which tend to have higher returns and labour productivity, with the exceptions of Mongolia and the Russian Federation. The difference is much more striking in the women to men employer ratio, which goes down to 1.6 per cent in Pakistan and 4.7 per cent in Turkey for 2005. The highest ratio among Asian and Pacific countries for which data exists is in the Russian Federation, at about 66 per cent. |
Total employment (thousands): The number of persons of working age who, during a specified brief period, either one week or one day, were in either paid employment or self-employment. Aggregates: Sum of individual country values. Source: International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Average annual employment growth rate (percentage): The average annual rate of change of total employment. Aggregates: Averages are calculated using total employment as weight. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Average annual labour productivity growth rate (percentage): The output (measured as value added in 1990 PPP dollars) divided by the total number of employed persons, expressed as the average annual rate of change. Aggregates: Averages are calculated using total employment as weight. Source: International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Employment in agriculture (percentage of total employment): The proportion of employment in agriculture, hunting, forestry and fishing of total employment, expressed as a percentage. Aggregates: Averages are calculated using total employment as weight. Missing data for employment in agriculture have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market Fifth Edition (online database, accessed in September 2007).
Employment in industry (percentage of total employment): The proportion of employment in mining and quarrying, manufacturing, construction and public utilities (electricity, gas and water) of total employment, expressed as a percentage. Aggregates: Averages are calculated using total employment as weight. Missing data for employment in industry have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Employment in services (percentage of total employment): The proportion of employment in wholesale and retail trade, restaurants and hotels, transport, storage and communications, finance, insurance, real estate and business services, and community, social and personal services, of total employment, expressed as a percentage. Aggregates: Averages are calculated using total employment as weight. Missing data for employment in services have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Employment to population ratio (percentage of population aged 15 and above): The proportion of the working-age population that is employed. For most countries, the working-age population is defined as persons aged 15 and above, although this may vary slightly from country to country. Aggregates: Averages are calculated using total population aged 15 and above as weight. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition ( online publication, accessed in September 2007, accessed in September 2007) and World Population Prospects: The 2006 Revision Population Database (online database, accessed in July 2007).
Female employment to population ratio (percentage of women aged 15 and above): The proportion of the working-age female population that is employed. For most countries, the working-age population is defined as persons aged 15 and above, although this may vary slightly from country to country. Aggregates: Averages are calculated using total female aged 15 and above as weight. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition ( online publication, accessed in September 2007) and World Population Prospects: The 2006 Revision Population Database (online database, accessed in July 2007).
Male employment to population ratio (percentage of men aged 15 and above): The proportion of the working-age male population that is employed. For most countries, the working-age population is defined as persons aged 15 and above, although this may vary slightly from country to country. Aggregates: Averages are calculated using total male population aged 15 and above as weight. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition ( online publication, accessed in September 2007) and World Population Prospects: The 2006 Revision Population Database (online database, accessed in July 2007).
Unemployment rate (percentage of labour force): The number of persons of working age who, during the reference period, were without work, currently available for work and seeking work, divided by the total labour force. National definitions and coverage of unemployment may vary. Aggregates: Averages are calculated using total labour force as weight. Missing data have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Female unemployment rate (percentage of female labour force): The number of females of working age who, during the reference period, were without work, currently available for work and seeking work, divided by the total female labour force. National definitions and coverage of unemployment may vary. Aggregates: Averages are calculated using total female labour force as weight. Missing data have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Male unemployment rate (percentage of male labour force): The number of males of working age who, during the reference period, were without work, currently available for work and seeking work, divided by the total male labour force. National definitions and coverage of unemployment may vary. Aggregates: Averages are calculated using total male labour force as weight. Missing data have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Youth unemployment rate (percentage of labour force aged 15-24): The number of young persons aged 15-24 who are without work, currently available for work and seeking work, divided by the total labour force of that age group. Source: United Nations Millennium Development Goals Indicators (online database, accessed in September 2007).
Female youth unemployment rate (percentage of women labour force aged 15-24): The number of young females aged 15-24 years who are without work, currently available for work and seeking work, divided by the total female labour force of that age group. Source: United Nations Millennium Development Goals Indicators (online database, accessed in September 2007).
Employees (percentage of total employment): The number of employees divided by the total employment, expressed as a percentage. Aggregates: Averages are calculated using total employment as weight. Missing data for employees have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Employers (percentage of total employment): The number of employers divided by the total employment, expressed as a percentage. Aggregates: Averages are calculated using total employment as weight. Missing data for employers have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Other self-employed (percentage of total employment): The number of own-account workers, members of producer's cooperatives, and contributing family workers divided by the total employment, expressed as a percentage. Aggregates: Averages are calculated using total employment by as weight. Missing data for other self-employed have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Women to men ratio in employment (percentage): The number of employed women divided by the number of employed men, expressed as a percentage. Aggregates: Averages are calculated using total male employment as weight. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Women to men ratio in non-agricultural sector
employment (percentage): The number of employed women divided by the number of employed men in sectors other than agriculture, expressed as a percentage. Aggregates: Averages are calculated using total male employment in non-agriculture as weight. Missing data have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007).
Women to men employers ratio (percentage): The number of female employers divided by the number the male employers, expressed as a percentage. Aggregates: Averages are calculated using the total number of male employers as weight. Missing data have been imputed. Source: Calculated by ESCAP using data from International Labour Organization, Key Indicators of the Labour Market, Fifth Edition (online database, accessed in September 2007). |
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Figures  |
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Figure 15.1 Index of change in the employment level for the regions of the world, 1991-2006 |
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Figure 15.2 Index of change in the employment level in selected Asian and Pacific country/area groupings, 1991-2006 |
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Figure 15.3 Labour productivity increase in selected Asian and Pacific country/area groupings, 2000-2005 |
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Figure 15.4 Unemployment rate in selected Asian and Pacific country/area groupings, North America, and Europe, 2004 |
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Figure 15.5 Employment to population ratio in selected Asian and Pacific country/area groupings, 1991-2006 |
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Figure 15.6 Employment to population ratio by gender for the regions of the world, 2006 |
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Figure 15.7 Employment to population ratio by gender in selected Asian and Pacific country/area groupings, 2006 |
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| Definitions |
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