The Association of Southeast Asian Nations (ASEAN) encompasses a dynamic and diverse region. It has
enjoyed remarkable economic growth in recent decades but has also witnessed rising inequality and the
persistence of poor quality jobs. By 2015, the ASEAN Economic Community (AEC), envisioned as a single
common market and production base, will become a reality. This will lead to the freer flow of goods, services,
investment capital and skilled labour in the region. Tariffs and non-tariff barriers will be reduced which will
have implications for intra-regional trade and investment. New opportunities for growth and prosperity are
likely to emerge, but the challenge is to ensure that growth is inclusive and prosperity is shared. To that end,
understanding the impact of the AEC on labour markets will be critical in making sound policy choices that
can shape the lives of the 600 million women and men in the region.
The President of the Asian Development Bank (ADB) and the Director-General of the International Labour
Organization (ILO) signed a joint statement in December 2012, in which the two organizations pledged to
strengthen their partnership to create decent work and address poverty, vulnerability and informal employment
in the region. Exemplifying the spirit of that cooperation, this publication is a joint undertaking of
the ADB and the ILO Regional Office for Asia and the Pacific. It reflects the high-level commitment of
both organizations to support the ASEAN Secretariat and ASEAN Member States to build a people-centred
ASEAN Community through better jobs and shared prosperity.
This publication provides an overview of recent economic and labour market trends in ASEAN, based on
official national and international sources. It examines the impact of the ASEAN Economic Community
on labour markets through model simulations and empirical and policy analyses, with the aim of offering
evidence-based policy recommendations towards fostering better jobs and inclusive and balanced growth.
The report highlights key priorities to address the challenges and opportunities of the AEC in terms of
strengthening regional cooperation mechanisms, facilitating structural change and improving job quality,
enhancing skills development, boosting productivity and wages, and managing labour migration.
We trust that readers will be inspired by this report, which presents the first ever analysis of the AEC impact on
jobs, working conditions and lives of women and men in ASEAN. The recommendations in the report provide
practical strategies and policy options that can assist policy makers in promoting inclusive and sustainable
growth for women and men, not just in individual countries, but in the ASEAN region as a whole.
We also hope that this report will provide the basis for further policy dialogue and ideas that will advance
social progress in the region.