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.