2022-11-06-ADB-Strengthening_Active_Labor_Market_Policies_to_Drive_an_Inclusive_Recovery_in_Asia_106页_4mb

Summary

Introduction

The COVID-19 pandemic has caused unprecedented job losses in Asia, disproportionately affecting vulnerable groups such as youth, women, and informal workers. While cash transfer programs provided short-term relief, active labor market policies (ALMPs) focused on upskilling, reskilling, and training are essential for long-term inclusive recovery. ALMPs have been underutilized and underfunded in the region, despite their potential to enhance employability and income-generating capacity.

Part I: Building Resilient Active Labor Market Policies

• Chapter 1 (Sri Lanka): Sri Lanka's human capital base is hampered by skills mismatches, low female labor force participation, and outdated labor laws. Education system issues, particularly in STEM and vocational training, limit employability. Recommendations include modernizing curricula, promoting STEM, reforming labor laws, and addressing the gender gap.

• Chapter 2 (India): India faces challenges such as high youth unemployment and a lack of alignment between education and employment outcomes. Vocational training and public works programs need better integration with governance factors, and education should be reoriented toward skills demand.

• Chapter 3 (India): Vocational training has varied impacts on employment and earnings depending on the type of employment (self-employment, informal, formal). Formal training boosts wages for certain jobs, while informal training increases employment chances. Policy reforms are needed to make vocational training more effective across all employment types.

Part II: Improving Technical and Vocational Education and Training for Youth

• Chapter 4 (Sri Lanka): Vocational training improves employability and income but faces barriers like financial constraints, lack of information, and institutional issues. Recommendations include better industry links, curriculum modernization, and flexible enrollment policies.

• Chapter 5 (Thailand): Young workers, especially females, are highly vulnerable during the COVID-19 crisis due to sectoral risks, occupational characteristics, and labor market rigidity. Youth unemployment rose significantly, requiring targeted ALMPs to address structural barriers and promote sustainable labor market incorporation.

Conclusion

The pandemic underscores the urgent need for comprehensive ALMPs in Asia. Key policy recommendations include:

• Strengthening vocational and general education to align with labor market needs.
• Enhancing female labor force participation through supportive policies like childcare and flexible work arrangements.
• Expanding access to and the quality of TVET programs, particularly for youth and marginalized groups.
• Implementing targeted interventions to address the "lost generation" and ensure inclusive, sustainable economic recovery.