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Demographic and technological changes are two megatrends set to transform labour markets around the world. These shifts are already under way and are expected to accelerate, particularly in East and South East Asia, which is home to the world's oldest and fastest ageing societies and a region with an enviable pace of economic development. The literature on the nature and impacts of each trend is vast, but the study of the interactions between them is often incidental and rarely in the Asian setting. Yet demography, technology, structural change and economic development are all related. Rapid economic development seen in many parts of Asia is the product of beneficial demographic trends as well as technological catch-up to the production productivity frontier. And technological advancements in medicine have precipitated the increasing levels of life expectancy seen around the world. While more years in good health raise prospects of working for longer, technological and structural change risk leaving older cohorts behind.

As Asia continues its demographic transition: (1) will an older population result in slower rates of invention, innovation, and diffusion of new technologies - and therefore impact on productivity growth?; (2) how might such trends play out across workplaces, occupations, and industries?; (3) how do specific technologies interact with the immediate challenges of population ageing; and (4) what policy strategies and further research are needed to ensure that labour markets perform at optimum? The purpose of this discussion paper is to map out evidence that may help answer these questions and identify different types of strategies needed to make the most of the dual challenge of rapid population ageing and technological advance. Although much of the existing literature originates in developed economies, we draw out the implications for the labour markets in East and South East Asia.

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