Technology is rapidly transforming jobs and wages across East Asia and the Pacific, creating both new opportunities and fresh challenges. While technological advancements are boosting employment and incomes in some sectors, their benefits are not being equally shared. The impact depends largely on which tasks can be automated and how profitable that automation is. Moreover, the extent to which workers benefit from these changes depends on whether their skills complement or compete with the technology.
In East Asia and the Pacific, technologies like industrial robots, artificial intelligence (AI), and digital platforms are reshaping work—not by eliminating jobs outright, but by changing the nature of tasks and labor markets. In countries where technology adoption has been high, employment and wage growth have followed, particularly in sectors that are able to integrate these tools. However, these gains have been concentrated among certain types of workers and industries, creating growing divides.
The feasibility and viability of adopting technology vary widely. While robots can perform a growing number of tasks, they are more economically viable in wealthier economies and higher-wage sectors. As a result, the adoption of technology is uneven, often reinforcing existing inequalities. According to the World Bank’s report Future Jobs: Robots, Artificial Intelligence, and Digital Platforms in East Asia and Pacific, this uneven adoption affects job quality and wage growth.
Use of industrial robots has expanded across the region. In 2022, high-income countries averaged 17 robots per 1,000 manufacturing workers, while China had 12, and countries like Malaysia, Thailand, and Viet Nam each had 8. Studies from Indonesia, Malaysia, the Philippines, Thailand, and Viet Nam show that robot adoption has raised productivity and boosted employment and earnings in many areas. For example, in Viet Nam, areas with greater robot usage experienced a 10% increase in employment and a 5% rise in labor income, suggesting that automation’s productivity gains can outweigh the job losses it causes.
Nevertheless, not all workers have benefitted. Between 2018 and 2022, robot adoption in five countries created around 2 million jobs for skilled workers, while displacing 1.4 million low-skilled workers, particularly those in routine manual jobs. Younger, tech-savvy workers have gained, while older workers in traditional roles have often been forced into lower-paying, less stable employment.
Artificial intelligence is another major force reshaping work. It is being used for tasks like translation and financial analysis and also assists in creative, strategic, and social roles. However, such high-skill jobs are relatively rare in developing East Asia and Pacific countries—only about 10% of workers hold them, compared to 30% in high-income economies. This means these countries are currently less vulnerable to AI-driven displacement but also less prepared to leverage AI for growth.
Digital platforms have also had a mixed impact. They have expanded access to flexible work opportunities and allowed previously excluded groups to enter the workforce. Companies like Alibaba, GoTo, and Grab have revolutionized sectors like e-commerce, delivery, and ride-hailing. In Viet Nam, for example, informal motorbike drivers saw income gains of around 20% after the arrival of ride-hailing apps. On the other hand, traditional taxi drivers faced job insecurity and declining earnings, illustrating the disruption these platforms can cause.
To ensure that technology drives inclusive growth rather than deepening inequality, policy makers must take proactive steps. Investing in education and skills development is crucial to prepare workers for the digital economy. Policies should also support labor and capital mobility to enable workers and firms to move where opportunities exist. Addressing imbalances in taxes and incentives can discourage excessive automation, especially in wealthier economies where it has slowed job growth. Finally, social protection systems must be adapted to support workers in the growing digital informal sector.
As technology becomes more affordable and widespread, its effects on labor markets will intensify. The World Bank is exploring this evolving relationship through a series of reports focused on jobs, productivity, digitalization, and green growth in East Asia and Pacific. The future of work in the region will depend on how well governments and societies respond to these transformative changes.
