2021 APEC Economic Policy Report

This year’s APEC Economic Policy Report discusses the complex topic of Structural Reform and the Future of Work. The four megadrivers of change discussed in the report—technological change, climate change, globalisation and demographic change—show how far our economies and societies have developed, but this development also comes with costs. The economic structures and policies that unleashed innovation, generated prosperity, and increased life expectancy have also led to growing inequality, environmental damage, and rising dependency ratios. And even as world grappled with these megadrivers, it experienced the COVID-19 pandemic in 2020, which added a layer of urgency to addressing these old challenges as new challenges emerged. The megadrivers of change will continue, but there is a need to address the real social and economic impacts that come with this change. In line with ensuring a people-centric future of work, the report makes five broad policy recommendations: (1) ensure economic security, (2) develop and redevelop skills, (3) update labour laws and institutions, (4), cooperate across borders, and (5) operationalise APEC initiatives on future of work.