FINANCIAL CRISIS COULD REVERSE ASEAN'S UNEMPLOYMENT TREND

By D. Arul Rajoo

BANGKOK, Oct 20 (Bernama) -- Asean's falling unemployment trend could be
reversed and unemployment rise from 5.7 per cent last year to 6.2 per cent by
2009, if growth drops because of the current financial crisis, according to a
new International Labour Organisation (ILO) report.

"More developed economies will face the largest relative increase. Combined
with recent fuel and food price rises, this will threaten the most vulnerable
people and could undermine social stability," said ILO.

The report said that the 10-member regional grouping's strong economic
performance in 2007 resulted in unemployment shrinking by 3.2 per cent,
(equivalent to 550,000 people).

Young people (aged 15-24) accounted for 530,000 of those jobs, and
Indonesia
and the Philippines benefited particularly, said the "Labour and Social Trends
in Asean 2008: Driving Competitiveness and Prosperity with Decent Work"
report.

The report has been prepared for the Asean Human Resource Summit to be
organised by the ILO's Regional Office for Asia and the Pacific in Singapore
beginning Wednesday.

ILO said competitiveness in the Asean economies would depend increasingly
on the quality of their workforces and good human resources management, adding
that the only way to sustain economic growth and social progress was to compete
through innovation.

The report said productivity growth was critical to competitiveness at all
levels.

"However, in recent years, China has overtaken Asean in the level of output
per worker, while the gap between India and Asean has narrowed markedly. This
poses a serious competitive challenge, particularly for Asean's more developed
members," it said.

Gyorgy Sziraczki, ILO's senior economist, said that relying on exports and
foreign investment increased Asean's vulnerability to a prolonged global
slowdown.

"As well as rising energy and food prices, these include intra-regional
migration, a growing shortage of high-end skills, rising income inequalities
and the erosion of social cohesion," it said.

"Improving labour productivity and the social aspects of regional
integration will be essential if we are to protect recent economic gains, ensure
stability and continue development.

"These challenges also require constructive labour relations amongst
governments, and workers and employers' organisations," he said.

-- BERNAMA