The Association of Southeast Asian Nations has impressed the world with its rapid economic growth following the COVID pandemic. The region, considered to be the largest beneficiary of the great power competition between the U.S. and China, has emerged as a supply chain hub and has attracted rising volumes of foreign direct investment.
The economies of most of ASEAN’s 10 member states are expanding quickly — an average of 5% annually since 2022. Benefiting from large and young populations, proximity to Chinese supply chains, and being a “friendshoring” location for the U.S., the region has become a magnet for manufacturing and strategic investments, such as in energy transition and critical minerals.
Despite promising economic growth and diplomatic achievements, many young people in ASEAN countries are grappling with significant challenges that dampen their optimism. Youth in these nations face rising unemployment and underemployment, coupled with persistent political unrest and a lack of meaningful reform. These issues fuel frustration, disappointment and even anger.
People from Generation Z — born between 1997 and 2012 — continue to bear the lingering effects of social isolation and distress from COVID-19 lockdowns, further complicating their transition into the workforce and society at large.
Youth unemployment, defined as the share of the workforce aged 15 to 24 actively seeking but unable to find work, remains a pressing issue across ASEAN. This challenge stems from a combination of slow or uneven economic development, a growing structural mismatch in the labor market and inadequate policy interventions to address these disparities.
In Indonesia, the largest economy in ASEAN with a population of 285 million, the unemployment rate reached 5.2% in 2023, while the youth unemployment rate hit 13.94% — the highest such rate in the region. There are no signs of that trending down any time soon.
Malaysia is also wrestling with youth unemployment, which reached 10.66% in 2023, the second highest in ASEAN. For degree holders, it is 11.4%. A 2021 report showed 43% of graduates were employed in jobs that matched their qualifications, while another 47% were forced to accept low- or semi-skilled jobs with low pay.
ASEAN also has a persistent brain drain. A report released by Malaysia’s government in February found that around 2 million skilled Malaysians are working overseas, with more young skilled Malaysians at home seeking better-paying jobs abroad.
Thailand and Vietnam have the lowest unemployment rate in the bloc, but their young people are not happy either. Many of them have witnessed political unrest or stagnant progress in social restructuring. The Thai economy is growing at its slowest rate since the mid-2000s, attributed in part to decades of turbulent politics.
Youth movements in Thailand surged in July 2020, with widespread protests erupting in high schools and universities nationwide. Four years on, many young people vividly recall those days when they or their friends took to the streets to demand the resignation of then-Prime Minister Prayuth Chan-ocha and to challenge the military-backed government that had dominated Thai politics for decades. These protests also broke taboos by calling for reform of the monarchy, sparking unprecedented debate on what was long considered an “untouchable” institution in Thai society.
As Thailand began to emerge from the pandemic, the intensity of street protests waned. However, political unrest and generational tensions persisted, particularly during the 2023 general election. In May 2023, the Move Forward Party (MFP) won the election with reformist proposals widely supported by young voters. Yet, MFP leader Pita Limjaroenrat faced significant obstacles. He was blocked from forming a government, accused of violating election laws and the constitution due to his commitment to royal reform. In August 2024, the MFP was dissolved by court order, and Pita was banned from politics for 10 years. In a contentious deal among party leaders, Paetongtarn Shinawatra, daughter of former Prime Minister Thaksin Shinawatra, was appointed prime minister.
Thai youth once again felt a wave of anger and betrayal. However, this time, many former protest leaders remained silent. Their aspirations for political change and monarchy reform now seem further out of reach than ever.
Unlike Thailand’s slower economic growth, Vietnam has experienced the fastest expansion in the region since joining the World Trade Organization in the early 2000s. It has also gained access to key free trade pacts, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The Vietnamese government has set an ambitious GDP growth target of 6% to 6.5% for the 2021 to 2025 period. FDI into Vietnam has created a significant number of jobs and led to rising wages. Additionally, enhanced investment in education has produced a more skilled and better-educated workforce, positioning Vietnamese youth as key beneficiaries of the country’s economic development and reforms.
However, despite these economic achievements, many Vietnamese youth face significant challenges that impact their quality of life. Rights activists and bloggers are often subjected to police intimidation, harassment, travel restrictions, arbitrary arrests and detention. Workers also encounter barriers to forming independent unions. In recent years, the government has intensified its restrictions on freedoms of expression, association, peaceful assembly, movement and religion. Organizations such as Human Rights Watch and Amnesty International have raised serious concerns and called for the immediate release of individuals detained under these harsh measures.
At a regional level, ASEAN has bucked the global trend, experiencing robust growth in international trade. While global FDI flows declined by 2% in 2023 to $1.33 trillion, the bloc recorded growing inward FDI flows for three straight years. Young people in ASEAN constitute 34% of the total population, but youth have faced unprecedented employment vulnerability, as well as the shocks of job losses, and disruption in education and training. They also face obstacles in trying to enter the labor market. While many jobs are being created in the digital economy, ASEAN youth find it challenging as most of them are not yet “ready” or trained for employment in that sector.
Youth dissatisfaction is a pressing issue for ASEAN that governments must address. These young people are the future of a region with great potential and they deserve to have better opportunities.
Kristy Tsun Tzu Hsu
December 8, 2024 05:05 JST
Nikkei Asia
https://asia.nikkei.com/Opinion/In-ASEAN-the-kids-aren-t-alright
