From Asian to Global Financial Crisis: Recovery Amidst Expanding Labour Precarity

Abstract

This article outlines the labour impacts and social consequences of the 1997–98 Asian financial crisis and 2008–09 global financial crisis on Southeast Asia. Both had adverse consequences on output, employment, income and poverty in the region, although the impact of the global financial crisis was much less severe compared to the Asian financial crisis. Economies recovered quickly from both crises. However, labour markets continue to be characterised by informal, vulnerable and precarious employment. The crises and the ensuing efforts of employers to resort to increased flexibility in labour hiring in both crisis and recovery periods fanned labour protests despite the diminutive size of the trade union movement and the underdeveloped system of industrial relations in most countries. In turn, these protests have triggered national and regional debates on rules for labour contracting, minimum wage adjustments and social protection. These debates have remained unresolved even as the region is gearing up for fuller economic integration in 2015 labelled as the ASEAN Economic Community.