Asian Development Bank’s Statista data highlights that the working age population of India is projected to rise by 2040 and maintain a substantial workforce until almost 2050, while countries like People’s Republic of China and Japan face declining working-age population.
The data features that India’s share of the working-age population in 2011 is 60% which is expected to rise by 65% by 2030 however will slightly decline hitherto from 65.1% to 64.9% in 2036.
The projection further highlights the importance of labor mobility and regional cooperation to address workforce imbalances and sustain economic growth across Asia and Pacific. It states that the Asia and Pacific region can improve demographic deficits through proactive regional migration and human capital investment.
Over the past 50 years, many countries have increased their demographic dividends by implementing infrastructure investments such as transportation, energy and telecommunications.
But, if demographic dividends turn to deficits, a shift in strategy like focusing on investing in human capital and fostering greater labor mobility across the region to maintain economic stability.
The United Nations on the other hand have said that the whole of Asia’s demographic dividend is set to decline, majorly in many countries. There is an urgent need to shift to adaptive policies.
Countries of Asia and Pacific must pivot to implementing policies that make the most of the remaining forces.
This includes increasing labor force participation, especially among women, and enhancing access to higher education for talented people regardless of socio-economic background.
Filling employment gaps in deficit countries, by having a regional approach to migration can help balance workforce deficits and surpluses. Further, flexible migration policies within the region can be exploited further to yield desired results.
This strategy strengthens trade and investment ties, foster innovation, and increase remittance flows.
Though, reverse migration from Asia and Pacific is directed towards the Gulf, currently. However, regional strategies adopted by the United Arab Emirates could provide more local job opportunities.
The organisations like Asean, can facilitate regional cooperation by systematic licensing and training requirements and growing skills partnerships between destination and origin countries. Asia and Pacific have matched population growth with productivity-enhancing investments in infrastructures.
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