Precarity trap: Gig economy failing Asia’s youth – Asia Times

Youth in the Asia-Pacific area are extremely concerned about the perilous work situation, with a growing number of young people finding themselves in temporary work without social security or long-term deals.

In Southeast Asia and the Pacific, over 28 % of children were working temporarily without financial security and social privileges in the document Global Employment Trends for Youth 2024 from the International Labor Organization.

This circumstance not just undermines the financial stability of people, but it also has significant effects on the state’s leads for long-term economic growth.

International changes, outlined in the ILO’s report, show that temporary jobs in the region has been rising since the early 2000s. Although adaptable, these jobs often provide long-term agreements, leaving younger workers without access to important benefits like medical and pensions.

In places like Indonesia, the Philippines, and Vietnam, the gig economy has more exacerbated the problem by creating accommodating but often unpredictable work. More than 44 % of Indonesian children are reportedly employed in the informal sector, frequently without arrangements, which makes it difficult for them to obtain social security or monetary stability.

The pressures that children are subject to also increase as a result of social expectations. In some Asian countries, steady employment is seen as a symbol of personal and social victory. This cognitive dissonance, but, causes emotional stress for some younger people who can only secure vulnerable jobs.

For instance, in South Korea and Japan, the societal pressure to find permanent jobs has increased in the number of mental health issues, including a noteworthy rise in youth suicides.

Technology, which was first seen as a gateway to new job prospects, has also played a part in expanding the uncertainty of these tasks.

Although the gig economy has opened up new employment opportunities for young people, particularly in the fields of logistics and transportation ( like Gojek and Grab drivers ), these positions come with significant financial hazard because of the absence of social security. Many of these employees rely on fluctuating desire, which results in unexpected income.

However, systems also holds the potential for revolutionary solutions. To improve transparency and offer better protection for gig workers, blockchain technology and intelligent contracts are being looked into.

These websites can make sure that employees are given timely payments and have access to fundamental social security benefits. In order to incorporate these safeguards into their job market frameworks, nations like Singapore are looking into collaborations with technology companies.

Precarious employment even poses obstacles to social mobility. Youth who are confined to temporary or casual jobs frequently lack access to training or advancement opportunities, which makes it challenging for them to change into more stable and well-paying positions.

This exacerbates intergenerational inequality, specifically for those in lower-income organizations. In order to address this, empowering and mentoring initiatives must be prioritized to enable youth to transition to industries like alternative energy and information technology with better job security.

Governments in the Asia-Pacific area want to improve interpersonal protections for younger workers, including expanding access to healthcare and pension plans for those in the informal sector, at the coverage level.

The establishment of more stable employment in the conventional business might be aided by tax opportunities for companies that offer long-term contracts to younger workers. Also, educational and vocational initiatives need to be more in tune with demands coming from the labor market in the future.

With a more integrated approach—combining open plan, technological innovation, and cultural change—the Asia-Pacific area can create a safer and more diverse labour market for children, paving the way for sustainable economic growth in the long term.

Setyo Budiantoro is a fellow at the Massachusetts Institute of Technology ( MIT ), Nexus Strategist The Prakarsa, and IDEAS Global Program Fellow.