ASEAN Youth Technology, Skills and the Future of Work

ASEAN YouthTechnology, Skills and the Future of WorkAugust 2019 World Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: +41 (0)22 869 1212Fax: +41 (0)22 786 2744Email: contact@weforum.orgwww.weforum.org© 2019 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. 3ASEAN Youth: Technology, Skills and the Future of WorkExecutive summary 1. Introduction 2. ASEAN youths show a strong commitment to lifelong learning and a growth mindset 3. The number one reason for changing jobs is to learn new skills 4. ASEAN youths want more on-the-job training and internships 5. ASEAN youths aspire to be entrepreneurs and to work for foreign multinationals. Traditional SMEs are less favoured 6. ASEAN youths favour jobs in the tech sector and look less favourably on traditional sectors 7. ASEAN youths value soft skills more highly than hard skills 8. ASEAN youths believe they are more competent in soft skills than in hard skills 9. Identifying skills gaps among ASEAN youths 10. Working overseas as a path to skills development for ASEAN youths 46788101113141516Contents 4ASEAN Youth: Technology, Skills and the Future of WorkBackground: how ASEAN youths assess technology and the future of workEach year, the World Economic Forum runs a survey of Association of Southeast Asian Nations (ASEAN) youths aged 15–35 years old. The goal is to understand the views, priorities and concerns of ASEAN’s young population. In 2019, the survey examined attitudes to jobs and skills, and the impact of technology on the future of work. The survey was conducted online in partnership with Sea, a Singapore-based consumer internet company operating in digital entertainment, e-commerce and digital financial services. In total, we collected responses from 56,000 young ASEAN citizens from six countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Viet Nam.ASEAN youths understand the potential for technology to disrupt job markets and place a high value on skills developmentASEAN youths are highly aware of potential disruptions and challenges that the Fourth Industrial Revolution may bring to their employment prospects: –9.2% of youths believe their current skills are already outdated. –A further 52.4% believe they must upgrade their skills constantly.This suggests a healthy approach among ASEAN youths to having a “growth mindset”, and the need to embrace lifelong learning in place of receiving education and training only in their early years.These concerns about keeping skills constantly updated in the face of technological change are also reflected in attitudes to jobs: –ASEAN youths say the number one reason they change jobs is to learn new skills. –What’s more, 5.7% of respondents report having lost a job either because their skills were no longer relevant or because technology displaced their job.However, even though ASEAN youths attach high value to skills development and training, they report only limited opportunities for formal on-the-job training: –Only 14.1% say they learned their most important skills through formal on-the-job training. –Youths working for big multinational companies (MNCs) say they are more likely to receive formal on-the-job training than those who work for small and medium-sized enterprises (SMEs) or family businesses. –ASEAN youths set a high value on internships. 81.4% believe that internships are either equally important, or more important, than training in school (traditional, formal education).For businesses, especially SMEs, these findings suggest a strong need to increase investment in human capital development – both to ensure a high-quality workforce and as a source of competitive advantage to attract workers.ASEAN youths show a strong desire to become entrepreneurs, or to work for foreign multinationals. But traditional SMEs are less favouredWhen asked what type of organization they work for today, and where they would like to work in the future, ASEAN youths show a strong preference for entrepreneurial settings, as well as for foreign multinationals: –Today, 31.4% are either entrepreneurs or work for a start-up. In the future, 33.1% aspire to work in an entrepreneurial setting. –Today, 8.6% work for a foreign multinational. In the future, 18.8% would like to work for one.However, while certain types of organization are popular, others are seen less favourably. Traditional SMEs are the backbone of ASEAN labour markets, but the survey reveals that small companies may face recruitment challenges: –While 18.3% of youths work for SMEs today, only 7.5% want to work for an SME in the future.Executive summary 5ASEAN Youth: Technology, Skills and the Future of WorkASEAN youths favour jobs in the tech sector and look less favourably on traditional sectorsWhen asked what sector of the economy they w