To prep Asian workers for the global labour market, start with education
Lee Jong-Wha says the rapidly changing market requires Asian governments to put special emphasis on vocational training, to ensure the next generation is equipped with the relevant skills
Asia is facing a human-capital challenge. Over the past three decades, significant gains in workforce size and quality helped Asia become a hub of global supply chains. But with workers increasingly unable to meet the demands of the labour market, the region’s remarkable development success could be derailed.
Asia has plenty of educated young workers. But, at a time of industrial upgrading and technological sophistication, the knowledge and skills gained in school are often insufficient. As a result, youth unemployment, underemployment and job dissatisfaction are on the rise.
Throughout Asia, a significant share of workers feel they are over- or undereducated for their jobs, while employers often lament a lack of qualified graduates.
Despite regional variations, some weaknesses in policies and systems designed to boost skills development are endemic. Among the most damaging is the inability to impart the right skills through pre-employment and on-the-job training.
Moreover, across Asia, a lack of involvement by private companies further undermines the ability of vocational education and training systems to respond adequately to changes in the labour market, thereby reducing graduate employability. In Bangladesh, Indonesia and Sri Lanka, less than a quarter of companies conduct formal in-house training. A dearth of well-qualified teachers and ineffective governance exacerbates the situation.