World Bank Regional Assessment Warns of Deepening Youth Employment and Productivity Challenges in Developing East Asia

Bangkok, 26 August 2026 – Developing economies across East Asia and the Pacific confront severe structural youth employment bottlenecks, persistent wage stagnation, and widening labor productivity gaps that threaten to undermine the region’s long-term demographic dividend, according to a flagship regional economic report published by the World Bank.

The comprehensive study, presented at the World Bank regional headquarters in Bangkok, warns that despite robust headline macroeconomic growth averaging 4.8% across developing ASEAN and Pacific member states, the youth unemployment rate remains stubbornly elevated at more than double the national averages, exceeding 15.2% across urban centers in Indonesia, the Philippines, Thailand, and Vietnam. Furthermore, an alarming 42% of employed young workers are concentrated in low-productivity, informal service sector jobs or precarious gig economy roles that offer negligible career progression, statutory social protections, or specialized skill development.