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APEC Regional Trends Analysis: Declining Labour Share and the Challenge of Inclusion

ARTA 2017
Published Date November 2017
Type of Publication Reports
Publication Under APEC Secretariat, APEC Policy Support Unit
Accessed 14419
Pages 35
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Description

This issue of APEC Regional Trends Analysis discusses who gains from economic growth and how this growth could be made more inclusive. “Declining Labour Share and the Challenge of Inclusion” finds that the labour share of GDP—an indicator of inclusiveness in an economy—has been on a downward trend over the past two decades. Apart from domestic issues, it identifies technological change and globalisation as catalysts of change in global labour markets and declining labour shares. It presents some policy options that can assist workers to take advantage of new opportunities in a rapidly changing economy. 

The next chapter on “APEC Grows Faster amid Global Policy Uncertainty” examines recent economic performance in the region. It finds that APEC is a driver of global growth with output in the region expanding by 3.9% in the first half of 2017. A rebound in trade contributed to this growth, as the value of merchandise exports increased by 10.4% and imports grew 11.9% in the first half of this year. While near-term growth expectations are positive, policy uncertainties on trade and liquidity present downside risks to future growth.