Southeast Asia (SEA) has entered a period of transition. Work is being transformed by technologies such as artificial intelligence (AI) and digital platforms. Hiring behaviour is already shifting. Data from Linkedin reveals that job postings requiring AI skills in ASEAN have grown by as much as 40% since 2016. These changes are not only occurring at the job level where new AI-enabled roles are emerging, but more profoundly at the skill level. Another report on workforce transformation in SEA finds that the skill requirements for jobs have shifted by as much as 40% since 2016. By 2030, requirements will change by as much as 72%.

AI’s transformative potential is vast but its adoption also exposes vulnerabilities for the workforce. Education systems are struggling to keep up with the velocity of skill change. Youth unemployment is high in many SEA countries including Malaysia, Indonesia and the Philippines due in part to graduates possessing qualifications no longer in demand. At the same time, SEA-6 faces the growing challenge of an ageing workforce, particularly in countries like Thailand, Singapore, and Vietnam, where populations are aging faster than global averages. Many older workers struggle to transition into digitally mediated roles or acquire emerging technology skills. Together, these trends point to a critical need for fair and future-ready approaches to workforce development. Governments, industry, and education systems must rethink how skills are developed, workers are protected, and opportunities are distributed in light of these changes.

Key policy considerations:

Building a more resilient workforce in Southeast Asia requires a broader understanding of protection grounded in three pillars:

• Proactive: Strengthening adaptive and anticipatory approaches to workforce development through futures thinking methodology, updating regulations, redesigning systems to address vulnerable sectors
• Progressive: Embracing fresh and novel approaches to learning and upskilling, given the dynamism of skill-changes. Building systems that reward alternative learning pathways, formalising coordination mechanisms, promoting a career management approach encompassing the whole life cycle
• Pro-innovation: Balancing worker’s resiliency with well-being and innovation through baseline benefits, co-regulation, and outcomes based regulation

Collectively, these approaches offer a more flexible pathway for the region to craft fit-for-purpose, future-ready policies that safeguard workers while enabling innovation in the digital economy.