Page 16 - AEI Insights 2019 - Vol. 5, Issue 1

AEI Insights, Vol 5, Issue 1, 2019

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1980 1985 1990 1995 2000 2005 2010 2015

JAPAN KOREA
PHILIPPINES SINGAPORE

Figure 3: Unemployment rates in Japan, South Korea, the Philippines and Singapore (1980-2015)
Source: World Bank (2018)

In recent years, changing work values and systems have also affected labour force participation
in Asia, especially among women. Female labour force participation varies across Asian
countries, reflecting differences in economic development, social norms and access to childcare
(Asian Productivity Organisation, 2018). In other words, a relatively lower female labor force
participation could be considered as fourth factor that would explain the lower unemployment
rate in Asia. Kinoshita and Guo (2015) highlighted three main differences between Asian and
Nordic countries that influence female labor force participation. First, childcare benefits and
services are more generous in Nordic countries. The flexibility of the childcare system in
Nordic countries reduces career breaks among female employees with young children. Second,
paternal roles in childrearing are given equal emphasis as maternal role, resulting in higher
work involvement for females. Third, family-friendly policies and flexible working
arrangements enable women (and men) to balance work and family. Unlike the Nordic
countries, the Asian region has less developed flexible work arrangements. Particularly in
Japan and South Korea, long and inflexible working hours associated with full-time
employment prevents qualified women to take up employment (Kinoshita and Guo, 2015).
Nevertheless, due to the effects of globalization, there is now a growing awareness of the
benefits of flexible working; hence an increasing demand for it (Asian Productivity
Organisation, 2018; Idris, 2014). In Thailand, for example, flexible working arrangement has
been found to increase female labour force participation (Asian Productivity Organisation,
2018).

This paper focuses on the response of labour market to economic crisis in Asia and Europe.
This is basically because there are significant difference in their responses. Due to strong
employment protection, European countries are more responsive in responding to economic
crisis. Whereas, unemployment rate in Asian countries is rather stable because of lack of such
employment protection.

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