Globalisation and technological changes have contributed to unprecedented economic growth, improvement in living standards, and poverty reduction. But these could also bring about structural unemployment in the short to medium terms, delegates heard on the second day of the Apec Economic Committee meeting in Ho Chi Minh City on Saturday. Structural unemployment is caused by changes in an economy, such as shifting labour demand patterns due to affluence, capital accumulation, urbanisation, international trade, or changes in technology, according to the 2017 Apec Economic Policy Report.

These changes lead to a mismatch between the skills of job seekers and those required for emerging job opportunities, it said.

In their individual economy reports, Apec countries identify skills mismatch as a key challenge in their labour markets. Young workers are not always gaining the right skills to prepare them for employment, leading to a high level of youth unemployment in several economies. Meanwhile, ageing population means older workers need to continue working while learning new skills.

Improving the labour force participation of young people, women, minorities and other disadvantaged group is a continuing effort among Apec economies. There are also some gaps in human capital development in the region. About a third of Apec economies have a secondary school net enrolment rate of below 60 per cent.

The unemployment rate among people aged 15-25 was above 10 per cent in 13 of Apec’s 21 economies in 2015. Moreover, 30 per cent of employed people in the region are unpaid family workers.

On the first day of the meeting, the committee discussed the Apec–OECD Framework on Competition Assessment. This sets out non-binding principles for implementing consistent competition assessment in Apec member economies. It also promotes Apec-wide co-operation on competition assessment.