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Poverty Reduction (MDG1): Why Decent Work is Important UN MDG Workshop: The Final Push – Media’s Role 28 May 2012 Phu Huynh Labour Economist ILO Regional Office for Asia and the Pacific Decent Work for All ASIAN DECENT WORK DECADE 2006-2015 Despite remarkable progress, workers still earning too little to escape poverty… % of workers living in poor households 70 Note: MDG Target 1B indicator. US$1.25 per day poverty line. 65 1991 2010 Source: ILO, Key Indicators of the Labour Market (KILM), 7th edition. 60 52 51 50 40 39 37 30 20 15 11 8 10 0 South Asia SE Asia and Pacific East Asia World …around 326 million workers in Asia live on less than US$1.25 per day Poor job quality remains pervasive… Own-account and contributing family workers as % of total employment 100 Note: MDG Target 1B indicator. 1991 82 80 2010 78 68 62 Source: ILO, Key Indicators of the Labour Market (KILM), 7th edition. 66 60 50 54 50 40 20 12 10 0 South Asia South-East Asia and Pacific East Asia World Developed Economies and EU …1.1 billion, or 3 in 5, are own-account or contributing family workers – with low pay and limited protection Productivity is rising but remains low… Labour productivity (GDP per person employed) 80,000 1991 Note: MDG Target 1B indicator. Labour productivity measured in constant 2005 international $. 2010 Source: ILO, Key Indicators of the Labour Market (KILM), 7th edition. 60,000 40,000 20,000 0 South Asia South-East Asia and Pacific East Asia World Developed Economies and EU …and can address poverty by raising wages/earnings, improving working conditions What needs to be done Three principles: 1. Job quality is key to reduce poverty, develop middle class, boost domestic markets 2. Strong institutions are vital for addressing inequalities 3. Social protection is an investment in society (not a cost) Three areas for action: 1. Reduce vulnerabilities and disparities 2. Navigate crises and volatility 3. Ensure fair wages/incomes, distribution ASIAN DECENT WORK DECADE 2006-2015 Decent Work for All Thank you Phu Huynh Labour Economist ILO Regional Office for Asia and the Pacific [email protected] For more information www.ilo.org/asia