News

Future Jobs in East Asia: AI & Robots

Source: worldbank.org

Published on May 24, 2025

Core topic: Future Jobs in East Asia

Keywords: AI, Robots, East Asia, Labor markets, Job displacement, Manufacturing, Technology adoption, Gig economy, Social protection, Economic growth

Main keywords: Future jobs, East Asia, AI, Robots, Labor markets, Technology impact, Manufacturing employment, Gig workers, Social protection, Labor mobility

Supporting n-grams: AI displacing service workers, Robots replacing industrial workers, EAP vulnerable to industrial robots, AI and digital platforms, New technologies changing labor markets, Robot adoption increases manufacturing employment, AI displacing and augmenting jobs, Social protection for gig workers, Labor mobility impeded by market failures, Agricultural mechanization impacts

The Future of Work in East Asia: AI and Robots

AI and robots are transforming the job landscape in East Asia, reshaping labor markets and influencing economic growth. As new technologies automate routine tasks and augment human capabilities, the region faces both opportunities and challenges in adapting to these shifts.

In East Asia, robots are increasingly taking over routine manual jobs in manufacturing, such as assembly line work. Meanwhile, AI is displacing service workers in both routine and nonroutine cognitive tasks, including roles like risk assessors and interpreters. This dual impact of AI and robots is altering the employment dynamics across various sectors.

Technology's Impact on Jobs in East Asia

The vulnerability of jobs to new technologies in East Asia differs from advanced economies. The region has a higher concentration of workers in routine manual tasks, making it more susceptible to the impact of industrial robots rather than AI. The adoption of these technologies depends on both technical feasibility and economic viability, with cost-benefit analyses driving their implementation.

Robot adoption in manufacturing has led to increased overall employment in the sector. Higher productivity from robots has expanded production scales, offsetting the displacement of some workers. However, the impact varies across population groups. Between 2018 and 2022, robot adoption created jobs for skilled workers but displaced low-skilled workers in several ASEAN countries.

AI is expected to both displace and augment jobs in the region. While East Asia may be less exposed to AI-driven displacement compared to advanced economies, it also has fewer opportunities to leverage AI's benefits. Only about 10% of jobs in the region involve tasks complementary to AI, highlighting the need for targeted skill development.

Sector-Specific Impacts and Labor Mobility

The impact of technology on jobs varies across sectors. Agricultural mechanization has led to productivity gains but has had minimal effect on employment levels. In contrast, industrial robotization has increased manufacturing employment in developing East Asian countries, defying global trends where such employment typically declines as robot adoption deepens.

Labor mobility remains a challenge due to market failures and policy distortions. Issues such as poor information about job opportunities, underdeveloped land and housing markets, and inadequate connectivity hinder worker movement. Addressing these barriers is critical to ensuring more balanced labor market outcomes.

The Role of Digital and Social Skills

Digital skills are essential for engaging with modern workplaces, which are increasingly reliant on devices, applications, and digital platforms. Social and emotional skills provide a competitive edge in tasks involving human interaction, as these are areas where machines struggle to compete.

Advanced technical skills are also in demand, particularly for roles involving the use and development of new technologies. As the region adapts to these changes, investment in education and training programs will be vital to equip workers with the necessary skills.

Social Protection for Gig Workers

The rise of the gig economy has underscored the need for social protection for workers outside traditional employment systems. In countries like Malaysia, self-employed gig workers have shown a willingness to contribute to social insurance schemes, even with slight income reductions.

Globally, various approaches are being explored to extend social protection to informal workers. These include financial incentives, behavioral nudges, and better communication about available schemes. Ensuring adequate social protection will be key to supporting workers in the evolving job market.

Conclusion

The future of work in East Asia is being shaped by the interplay of AI and robots, with far-reaching implications for labor markets and economic growth. While challenges exist, targeted policies and investments in skills and social protection can help the region navigate these shifts and capitalize on the opportunities presented by new technologies.