On average, labour force participation rates in 2023 in Asia/Pacific economies (61%) were almost at the same level as OECD economies (62%) (Figure 4.1). In 2023, labour force participation rates were highest for Cambodia, New Zealand and Viet Nam at over 70%, while they were below 50% in Nepal, Samoa, Sri Lanka, Tajikistan and Timor-Leste.
There is a gender gap in labour force participation rates (Figure 4.1). On average, across the region, labour force participation rates were 71% for men and 51% for women in 2023. In that year, gender labour force participation rate gaps were highest in Bangladesh (55%pt), India (41%pt) and Pakistan (56%pt).
Looking ahead, OECD projections (Figure 4.2) show that – if labour participation rates by five‑year age groups among men and women follow the “baseline” scenario – the labour force will decrease substantially in Japan (from peak of 67 million in 2020), China (from peak of 810 million in 2020) and Korea (from peak of 28 million in 2022). In contrast, Australia, India and Indonesia are projected to experience an increase in the size of the labour force over the next few decades. G20 countries have committed to reduce the gender gap in labour force participation rates. This scenario would have a significant effect on the size of the labour force in several countries, especially in India, where female labour force participation rates are currently low, the labour force could potentially double by 2060.
