Reaping the economic and social benefits of labour mobility: ASEAN 2015

The ASEAN Economic Community (AEC) plans more steps towards full economic integration among Member States in 2015, including the free mobility of professionals and highly skilled workers. Economic integration aims to generate inclusive growth and shared prosperity for the 600 million residents and 285 million workers in the ten ASEAN Member States. The study is to inform ASEAN Member States and the ASEAN Secretariat of policies to spur the creation of decent work, protect migrant workers and promote inclusive development.

The ASEAN Economic Community (AEC) is moving towards closer economic integration among its Member States, including the free mobility of professionals and highly skilled workers. The freer flow of goods and capital will place path dependence, which encourages firms that already hire migrant workers to expand, in competition with wage convergence, which will reduce incentives for international labour migration. Most current AEC migrants are low skilled and most new migrants are likely to be low skilled. Governments need to acknowledge this reality and develop policies to liberalize and regularize the cross-border movements of labour. They cause mutual recognition agreements to promote the movement of professionals, and regulate the recruitment and employment of migrant workers, to ensure that migrant and local workers are treated equally. Demographic and economic realities suggest international labour migration within the AEC will increase making the implementation of the 2007 ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers imperative, to ensure that labour migration promotes cooperation rather than conflict between AEC Member States.