The Growing Crisis: How Job Scarcity and Automation Are Fueling Gen Z Protests Across Asia

Youth-led demonstrations across Asia in recent months have focused on corruption, elitism, and censorship. However, underlying Gen-Z's frustration is a more concerning issue: a devastating employment crisis.

The generation born around the millennium faces a grim economic outlook. Diminishing job opportunities and the rise of artificial intelligence are hampering their prospects. If not addressed, the demographic dividend that political leaders frequently highlight as a pathway to prosperity could instead become a catalyst for social upheaval.

Former President Donald Trump's trade conflicts and anti-globalization sentiment are transforming labor markets. According to Morgan Stanley's report "Asia Faces Rising Youth Unemployment Challenge," youth unemployment rates in Asian regions consistently exceed national averages by two to three times. The limited available positions are often unstable, underpaid, or disappearing due to automation.

This issue is particularly severe in the three most populous nations, where economic growth fails to generate sufficient employment opportunities for millions of job seekers: China, India, and Indonesia report youth unemployment rates of 16.5%, 17.6%, and 17.3%, respectively. In comparison, the United States reports a rate of 10.5%.

Underemployment is also prevalent. Informal labor exacerbates the situation: more than half of Indonesia's workforce depends on casual employment. These positions typically offer irregular schedules, minimal security, and low wages.

Economic insecurity was a significant factor in August's protests in Indonesia. Initially triggered by outrage over parliamentary privileges, they evolved into broader demonstrations against inequality, highlighting the precarious conditions faced by millions of gig workers throughout the country.

These challenges will likely intensify due to AI and automation advancements. In India, for instance, these technologies could reduce employment growth opportunities, particularly in the IT services sector, traditionally a key employer of young professionals.

Textile factories and automotive plants, traditional employers of young Asians, are becoming increasingly automated. Concerningly, this occurs as tens of millions more individuals are expected to enter labor markets in the coming decade. India alone anticipates 84 million new entrants, while Indonesia will add 12.7 million, according to Morgan Stanley estimates.

China has also experienced a surge in job seekers. The Asia Society notes that this year's graduating class is historically unprecedented, with over 12 million students. They face an employment market disrupted by intense trade tensions with the US and AI advancements across nearly every industry.

Protests are occurring in China as well, despite governmental suppression. The China Dissent Monitor reports that many demonstrations relate to economic slowdown. In the first half of this year, protests doubled compared to the same period last year.

For decades, Asian leaders have relied on robust economic growth to maintain stability. However, expansion without job creation isn't viable long-term. Governments must equip young people with contemporary skills and create pathways to meaningful employment. Educational curricula need to shift from excessive academic focus toward entrepreneurship. Vocational training in trades and crafts would also be beneficial.

Economic reforms will be essential. China has been attempting to reorient its economy toward consumption and services but hasn't achieved its goals, with exports contributing almost one-third of growth during the first half of the year. India, despite being among the world's fastest-growing economies, isn't generating sufficient employment. According to Morgan Stanley, growth must double to address underemployment challenges. Meanwhile, Indonesia's long-term growth is projected to fall short of the government's 8% target as it confronts competition from inexpensive Chinese imports and US tariffs.

Policymakers in all three nations may ultimately need to implement redistributive measures to prevent increasing social unrest. These could include subsidies and expanded public sector employment. While cash transfers aren't long-term solutions, they provide governments with temporary relief.

Corruption and nepotism, deeply embedded in many Asian societies, must also be addressed. Young people consistently cite these issues as sources of frustration. Without tackling these problems, even new employment opportunities risk being perceived as unfairly distributed.

Asia's Gen-Z protests represent early indicators of a generation experiencing hopelessness. The challenge for regional governments will be whether they can provide young people not just with employment, but with a future worth believing in.