The Current Labour Force in Cambodia Among ASEAN!

Cambodia has emerged as the ASEAN leader in Labour Force Participation Rate (LFPR), according to a recent report by the ASEAN Secretariat. This key economic indicator, which measures the proportion of a country’s working-age population actively engaged in the labour market, underscores Cambodia’s strong workforce participation relative to its regional peers.

Cambodia Leads in Labour Force Participation

The latest data highlights Cambodia’s consistent performance in workforce participation, with an LFPR of 82.6% in 2014, rising to 83.7% in 2022. This surpasses other ASEAN nations, including Thailand and Vietnam, which reported high participation rates in 2014—70.3% and 77.5%, respectively—but saw notable declines by 2023 to 68.6% and 68.9%.

Other ASEAN nations have experienced mixed trends. While Indonesia and Malaysia improved their LFPR from 66.6% (2014) to 69.5% (2023) and 67.6% (2014) to 70% (2023), respectively, countries such as Brunei and Myanmar recorded declines. Brunei’s LFPR fell from 65.6% in 2014 to 63.6% in 2023, while Myanmar saw a sharper drop from 67% to 60.7% over the same period. The Philippines, after a decline in 2018, managed a recovery to 64.8% in 2023. Singapore and Laos showed gradual improvements, with Singapore rising from 67% in 2014 to 68.6% in 2023, while Laos, despite having the lowest participation rate, reached 47.1% in 2022.

Gender Disparities in Labour Participation

The 2023 report also highlighted significant gender disparities in labour force participation across ASEAN. Myanmar recorded the largest gender gap, with 77.1% of men participating in the labour force compared to only 47% of women. Indonesia exhibited a similar trend, with male participation at 84.3% and female participation at just 54.5%.

Cambodia, however, reported one of the narrowest gender gaps, with male LFPR at 88.7% and female LFPR at 78.9%, reflecting a difference of only 9.8 percentage points. This places Cambodia among the top ASEAN nations in female workforce participation, alongside Vietnam (62.9%) and Singapore (62.6%). Conversely, Laos had the lowest male and female participation rates, at 52.6% and 41.9%, respectively.

Challenges and Opportunities for Cambodia’s Labour Market

Despite its high LFPR, Cambodia faces challenges in labour productivity. The Asian Development Bank (ADB), in its latest ‘Country Diagnostic Study’ (CDS), emphasized the need for strategic human capital investments to sustain economic growth and achieve upper-middle-income status by 2030. While Cambodia has made considerable progress in labour development, its productivity levels remain below other Southeast Asian manufacturing hubs.

To sustain its leadership in workforce participation and boost economic competitiveness, Cambodia must focus on enhancing skills development, improving education and vocational training, and fostering an environment conducive to higher wages and job security. Strengthening labour policies and attracting foreign investment in high-value industries will also be crucial in maintaining the Kingdom’s economic momentum.

Conclusion

Cambodia’s high Labour Force Participation Rate positions it as a regional leader in workforce engagement. However, to translate this strong participation into sustainable economic growth, the country must address labour productivity challenges through improved education, skills training, and economic diversification. As ASEAN economies continue to evolve, Cambodia has the opportunity to leverage its dynamic workforce to drive long-term prosperity.

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Cambodia is placing digital education at the heart of its long term economic transformation as the government works to prepare the country for a technology driven future. Speaking in Phnom Penh during the graduation ceremony of about 4,000 students at the Royal University of Law and Economics on Thursday, Prime Minister Hun Manet outlined plans to strengthen digital learning, improve workforce skills, and accelerate Cambodia’s transition from a labour based economy to one powered by innovation, technology, and knowledge. The initiative forms part of the government’s broader vision to improve national competitiveness while preparing citizens for rapidly changing global economic and technological trends.

The Prime Minister said expanding digital education will help create a more skilled workforce capable of meeting future labour market demands. By integrating online learning into education, improving digital infrastructure, and encouraging lifelong learning, Cambodia hopes to build stronger human capital that supports sustainable economic growth and prepares the country for the opportunities of the digital era.

Digital Skills Become a National Priority

Speaking during the graduation ceremony and the inauguration of a new six storey building at the Royal University of Law and Economics in Phnom Penh, Prime Minister Hun Manet praised the university for producing skilled graduates who continue contributing to Cambodia’s social and economic development.

He noted that nearly 28 years of peace have enabled Cambodia to make remarkable progress while adapting to major global challenges including technological advances, economic transformation, public health issues, and climate change. According to the Prime Minister, maintaining this momentum now depends on investing more heavily in education, innovation, and digital capability.

“Our long-term national socio-economic development strategy prioritises people while adding technology as a new priority to shift Cambodia’s economic model from reliance on labour to one based on skills and technology,” he emphasised.

Pentagonal Strategy Focuses on People and Technology

Hun Manet explained that the government’s Pentagonal Strategy places people at the centre of national development while introducing technology as a key pillar for future economic growth.

He said Cambodia is improving education quality, expanding vocational training, strengthening both technical and soft skills, and offering reskilling and upskilling programmes to help workers adapt to changing labour markets and digital technologies.

“The government is also improving working conditions in both the public and private sectors through institutional and governance reforms, greater meritocracy and enhanced incentive systems,” he added.

These reforms are designed to ensure Cambodian workers remain competitive as industries increasingly adopt automation, artificial intelligence, and digital technologies.

Digital Policies Aim to Prepare Cambodia for Industry 4.0

The Prime Minister highlighted several national policies supporting Cambodia’s digital transformation, including the Cambodia Digital Economy and Society Policy Framework 2021 to 2035 and the Cambodia Digital Government Policy 2022 to 2035.

These long term strategies seek to build a modern digital economy, create a smarter government, encourage innovation, and prepare Cambodia for Industry 4.0 technologies, particularly artificial intelligence. They also aim to improve educational quality, increase efficiency, expand equal learning opportunities, and foster innovation throughout the education system.

Hun Manet stressed that continued investment in human capital will be essential as Cambodia faces increasing competition in global labour markets and evolving geopolitical and economic conditions.

Schools Encouraged to Expand Online Learning

To strengthen digital education nationwide, Hun Manet called on educational institutions to work closely with the Ministry of Post and Telecommunications to improve digital infrastructure across schools.

He encouraged wider use of online learning platforms, greater access to lifelong education, and more inclusive digital learning opportunities that allow students across the country to develop stronger technological skills regardless of location.

According to the Prime Minister, expanding digital education will help produce digitally skilled citizens capable of supporting Cambodia’s future economic ambitions.

Experts Say Skilled Workers Are Essential for Future Growth

Socioeconomic researcher and analyst Chey Tech believes Cambodia’s investment in digital education is closely linked to its long term national development goals.

He noted that Cambodia aims to graduate from Least Developed Country status by 2029, become an upper middle income country by 2030, and achieve high income status by 2050. Reaching those milestones will require significant improvements in workforce quality.

“To move forward, Cambodia needs to promote high-technology and heavy industries that create higher-paying jobs, enabling workers to earn incomes that are consistent with the country’s development ambitions,” he said.

Tech also stressed that workers must continuously upgrade their skills through training programmes offered by government institutions, private companies, and the Ministry of Labour and Vocational Training.

“Students should acquire technical and digital skills that match today’s technological landscape, support the growth of Cambodia’s industrial sector, and contribute to the country’s journey towards upper-middle-income status and ultimately high-income status by 2050,” he said.

Digital Transformation Supports Cambodia’s Economic Vision

Cambodia’s Digital Economy and Society Policy Framework 2021 to 2035 provides the roadmap for building a vibrant digital economy by encouraging digital adoption across government, businesses, and society. The framework is designed to create new engines of economic growth while improving public services and social welfare in an increasingly digital world.

As Cambodia prepares for the next stage of its economic development, strengthening digital education and investing in human capital are expected to play a central role in creating a highly skilled workforce capable of competing on the global stage.

Conclusion

Cambodia’s commitment to digital education reflects a broader national strategy to transform its economy through innovation, technology, and skilled human capital. By expanding online learning, strengthening digital infrastructure, and investing in workforce development, the government hopes to prepare future generations for Industry 4.0 while supporting the country’s ambition of becoming an upper middle income economy by 2030 and a high income nation by 2050. Success will ultimately depend on sustained collaboration between government, educational institutions, businesses, and learners who are willing to embrace lifelong digital learning.

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