13 January 2015: The UN Economic and Social Commission for Asia and the Pacific (ESCAP) has launched its annual update on economic and social issues in the region, predicting moderate growth in 2015, but noting that “labour market imperfections” have meant insufficient creation of decent jobs.

The annual publication, titled ‘Economic and Social Survey of Asia and the Pacific 2014: Year-end Update,’ analyzes various challenges for the region and their likely impacts on macroeconomic policies. They suggest that addressing physical and social infrastructure needs in the region will require US$815 billion annually.

The report projects slightly increased growth of 5.8% in the region, up from the 2014 rate of 5.6%, except in North and Central Asia, which will be affected by the economic turbulence in the Russian Federation.

The authors recommend labor market reforms to increase the growth of decent jobs. They suggest that fossil fuel subsidies be rolled back and the savings invested in health, education and the provision of income security for the elderly and persons with disabilities in Indonesia, Malaysia, the Philippines and Thailand. They note that the fall in oil prices will affect countries differently, depending on whether they are net importers or exporters.

The authors highlight two major challenges for countries: shortage of infrastructure that has hindered growth in manufacturing and trade; and lack of education and skills training to prepare workers for employment in higher-value business sectors. They propose responses including adopting policies to increase the contribution of the private sector to infrastructure development, and establishing regional intermediary institutions to support this. [Publication: Economic and Social Survey of Asia and the Pacific 2014: Year-end Update] [UNESCAP Press Release]