This synthesis report presents the outcomes of a study by the Asian Development Bank (ADB) to explore the implications of the Fourth Industrial Revolution (4IR) on the future of the job market in Southeast Asia. It is part of the series of reports that assesses how jobs, tasks, and skills are being transformed in industries with high relevance to 4IR technologies in Cambodia, Indonesia, the Philippines, and Viet Nam. The series provides recommendations to strengthen policies, skills, and training as well as new approaches, strategies, and actions to enhance the readiness of each country's workforce for 4IR. The study was undertaken and completed prior to the spread of coronavirus disease (COVID-19), which has caused unprecedented disruptions to labor markets and to the activities of the workforce across the world. The study's policy recommendations and strategies to strengthen widespread digital capabilities, online/distant learning, digital platforms, education technology, and simulation-based learning have become all the more relevant in the aftermath of COVID-19.
The study included the following features: (1) it focused on two industries in each country deemed important for growth, employment, and 4IR: tourism and garments in Cambodia, food and beverage (F&B) manufacturing and automotive manufacturing in Indonesia, information technology and business process outsourcing (IT-BPO) and electronics in the Philippines, and agro-processing and logistics in Viet Nam; (2) the study includes a survey of employers in the chosen industries, a modeling exercise to estimate job displacement and gains, a survey of training institutions on their readiness for 4IR, and analysis of data from online job portals from each country to assess trends in skills demand; (3) the policy landscape was assessed, based on benchmarks derived from international trends and experiences, for its ability to harness the potential of Industry 4.0 to increase productivity, facilitate skills development, and incentivize industry; and (4) recommendations suggesting how to strengthen policy approaches to 4IR, especially the investments needed for skills and training, new approaches to deliver them, and strategies and actions to enhance the readiness of each country's workforce for 4IR.
Key findings from the study are as follows: (1) 4IR will bring both job displacement and job gains; (2) 4IR could have important implications for gender and inclusiveness; (3) job tasks will shift from routine, physical tasks to higher-order tasks with 4IR; (4) shortages of skills at the required proficiency need to be addressed in all industries; (5) training institutions in all four countries need to prepare for the challenges of 4IR; (6) courses and training delivery have begun to change but further transformation is needed; and (7) 4IR policies and strategies are heading in the right direction but need active implementation.
Key recommendations are: (1) develop 4IR transformation road maps for key sectors; (2) develop industry-led [technical and vocational education and training] TVET programs targeting skills for 4IR; (3) upgrade training delivery through 4IR technology in classrooms and training facilities; (4) develop flexible and modular skills certification programs; (5) formulate new approaches and measures to strengthen inclusion and social protection under 4IR; and (6) implement an incentive scheme for firms to train employees for 4IR.
Edited excerpts from publication.
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