# How is technology reshaping Southeast Asia’s labor market and economy? - Link: https://www.thailand-business-news.com/asean/167958-how-technology-is-transforming-seas-labor-market-and-economy - Published: 2025-08-13T07:26:00+07:00 - Author: J. Allan Technology has played a crucial role in Southeast Asia, generating 600,000 new jobs over the past five years. This surge has greatly contributed to employment opportunities and fueled economic growth in the region. Moreover, the rapid adoption of digital platforms and e-commerce has empowered small and medium-sized enterprises (SMEs) to expand their reach, driving innovation and competitiveness. Investments in tech startups have also surged, fostering a vibrant ecosystem that attracts global partnerships and accelerates technological advancements. As governments prioritize digital transformation, initiatives in education and infrastructure aim to equip the workforce with essential skills, ensuring sustainable growth and resilience in the face of global challenges. ADVERTISEMENT ## Key takeaways * Technology has created 600,000 new jobs in Southeast Asia in the last five years and 2 million skilled jobs between 2018 and 2022. * The adoption of robots and AI has boosted the labor market, although only 10% of jobs in the region are related to AI, compared to 30% in developed countries. * The World Bank projects a growth of 4.8% in 2024 and 4.4% in 2025 for the region, with China seeing a decrease and other countries like Indonesia maintaining or surpassing pre-pandemic levels. According to the latest East Asia and Pacific Economic Update from the World Bank, technology has played a key role in job creation in the SEA region. The study indicated that despite concerns about job losses related to automation, the adoption of industrial robots and artificial intelligence (AI) has driven job creation in the region. Aaditya Mattoo, Chief Economist of the World Bank for East Asia and the Pacific, explained that between 2018 and 2022, the integration of robotics in manufacturing processes generated approximately 2 million skilled jobs in formal employment sectors. ## How has technology impacted the labor market? The report has shown how technology has played a key role in the growth of the labor market. It highlighted that automation, the adoption of industrial robots, and artificial intelligence (AI) have boosted the labor market. The SEA region still faces unique challenges, as only 10% of regional jobs involve tasks complementary to AI, compared to approximately 30% in developed nations. ### Related**Posts** ### 󠀁[What Would an ASEAN-Canada Free Trade Agreement Mean for Foreign Investors?](https://www.thailand-business-news.com/asean/331504-what-would-an-asean-canada-free-trade-agreement-mean-for-foreign-investors)󠁿 ### 󠀁[Offering incentives for companies on the Green List with the IDX Green Equity designation](https://www.thailand-business-news.com/asean/indonesia/331229-offering-incentives-for-companies-on-the-green-list-with-the-idx-green-equity-designation)󠁿 ### 󠀁[Indonesia Representative Offices: What They Can and Cannot Do](https://www.thailand-business-news.com/asean/324537-indonesia-representative-offices-what-they-can-and-cannot-do)󠁿 ### 󠀁[Vietnam Emerges as the European Union’s Top Trading Destination Within Southeast Asia](https://www.thailand-business-news.com/european-union/331200-vietnam-emerges-as-the-european-unions-top-trading-destination-within-southeast-asia)󠁿 ## The economic context in the technology market Technology driven by various sectors such as automation and artificial intelligence has impacted the growth of SEA economies. The World Bank projects overall regional growth of 4.8% in 2024, moderating to 4.4% in 2025. In the context of technology as a key player in the expansion of regional economies, the World Bank projected sustained growth for most local economies in 2025. On the other hand, only China, the largest economy in the region, is expected to see its growth decline from 4.8% this year to 4.3% in 2025. The World Bank explained that other countries like Indonesia will grow in 2024 and 2025 at levels equal to or higher than pre-pandemic levels, while growth in Malaysia, the Philippines, Thailand, and Vietnam is expected to be below those levels. However, they will show better growth figures than China.