Asean employment outlook: The quest for decent work in the platform economy

Availing goods and services through digital platforms remains a customary part of daily life among digital consumers post-pandemic.

SOutHeASt Asia is among the forefront regions on global e-commerce dynamism. estimates show the region’s digital economy tripled from $32 billion in 2015 to $100 billion in 2019. this upward trajectory proved resilient, notwithstanding the lockdowns during the pandemic, as gross merchandise value surged to $170 billion in 2021, and inched close to $200 billion in 2022—doubling its 2019 levels in three years. As governments implement largescale mobility restrictions and social distancing measures, people migrated to digitally-mediated versions of in-person activities, such as videoconferencing, telework, and online shopping.

E-commerce remains the largest contributor to digital economy growth, as more businesses and consumers embrace digital transactions. ERIA estimates Southeast Asia’s e-commerce revenue to grow four times its regional GDP by 2023 relative to 2018 levels, whereas global e-commerce revenue is only projected to grow twice during the same period. Various market analyses likewise estimate the region’s e-commerce to reach $150 billion to $220 billion by 2025.

According to 2022 estimates, digital economy in Southeast Asia reportedly created 160,000 jobs to date, through e-commerce, transport, food delivery, online travel, online media, and financial services. Moreover, 30 million more job opportunities were indirectly spurred as support to digital platform businesses, including transport driverpartners, food delivery riders, and third-party logistics companies. Digital platforms were estimated to enable more than 20 million merchants to expand their operations online, and a survey found 1 in 3 merchants believe they would not have survived the pandemic without digital platforms.

For example, ride-hailing applications continue to disrupt urban mobility in key cities around the world, and Southeast Asia is no exception. A 2022 Blackbox survey conducted on six Southeast Asian markets found that more than half of respondents recently used ride-hailing applications. This trend is expected to increase as restrictions imposed during the pandemic were relaxed. While the region’s transport-delivery platform market is dominated by Grab and distantly followed by Gojek, various local applications have also sprouted across key urban areas.

The digitally-enabled platform economy has been a critical avenue for income and employment opportunities. It has permitted workers to remain in the workforce during the pandemic. However, the same global health crisis also exposed risks and vulnerabilities. Cases were reported where workers exited platform work due to volatilities in market demand, heightened public health risks, and deficiencies in decent work conditions and social protection provisions.

Against this backdrop, the Asean Employment Outlook aims to investigate emerging issues in the world of work in Southeast Asia. Focusing need for their continuous reskilling and upskilling.

The digitalization of government will also contribute to the efforts to make it easier to do business in the country while providing our people with better services. The President also promised to improve the country’s Internet infrastructure to improve Internet speed and to provide all parts of the country, including the remote areas with Internet connectivity.

All of these I mentioned in the second SONA of the President are part and parcel of our Tatak Pinoy advocacy, which aims to grow and empower Filipino industries so that they can produce complex, high-quality, high-value products and make them more globally competitive. We thank the President for including our Tatak Pinoy bill among his list of priority legislation for Congress. The recognition by the President of the importance of this measure bodes well for the future of our industries and service providers in their efforts to expand, gain recognition and penetrate the world market.

Tatak Pinoy is about enhancing

See “Angara,” A15 on workers in the platform economy, the Outlook offers a comprehensive analysis on the opportunities and challenges brought by the rise of online labor platforms (OLPs) in the region. Based on available data, the following findings were identified: a. O LPs became a choice for people looking for secondary and complementary jobs. However, joblookers were not always absorbed because of the competitive nature of these arrangements. b. T he emergence of the services sector as an engine of growth and structural transformation contributed to the rise of OLPs. However, OLPs only reduced unemployment in countries where capital investment, including digital infrastructure, is substantial. c. Women in lower-income economies are generally more engaged in OLPs, thereby increasing women participation in labor markets and reducing employment gender disparity. However, gender remuneration equality remains an issue given the observed unequal distribution in work experience, education, and domestic responsibilities. d. W hile only a few major platforms dominate in the market, their revenue shares are contestable and can be challenged by potential local entrants. This is possible given the

See “Eagle Watch,” A15