Recovery, job quality and policy priorities in developing Asia

While the impact of the global economic and financial crisis was large on the economies of Asia and the Pacific, translating into squeezes on enterprises, widespread job losses, expanding informal employment and falling household incomes, the region has rebounded quickly and strongly. GDP growth figures indicate that economic growth in developing Asia accelerated to 9.3 per cent, compared with a resilient 7.0 growth in 2009. This strong growth rate, driven by China and India, reflects robust domestic demand, supported by macroeconomic stimulus measures and the revival of private investment and external demand. The region’s labour markets have also shown some positive signs. Yet creating more and better jobs to reduce the region’s decent work deficits remains a challenge. Building a more balanced and sustainable future much depends on drawing lessons from the crisis, choosing the right policy priorities and enhancing policy coherence. The paper highlights recent economic developments, examines labour market trends and identifies some emerging policy priorities in the post-crisis era, with a focus on job quality, social protection, infrastructure development and inclusive financial services.