Myanmar’s Struggling Workforce Faces New Blow from US Tariffs
By MKE Staff
10 April 2025
President Trump’s tariffs are just one more blow to Myanmar’s youth trying to live a normal life since the 2021 military coup. As bombs fall and civil war rages, Myanmar workers also have to dodge conscription and pass daily police checks searching for increasingly rare job opportunities.
Even before the announcement of 44% tariffs on Myanmar, many multinational companies have withdrawn from Myanmar. The Yangon Stock Exchange has halted trading, and companies such as Amata Corporation (industrial zone development project), Pact Global Microfinance Fund (PGMF), Telenor, Suzuki, and Toyota have suspended their operations in the country. Motivations for withdrawal amongst these companies varied, with Toyota citing safety concerns for employees, Amata Corporation concerned about international sanctions on companies that operate in Myanmar, and Suzuki struggling to import necessary goods due to military restrictions on imports. These withdrawals did demonstrate global opposition to the military coup, but has also created less opportunity for Myanmar workers.
Personal experience in the microfinance sector, particularly in the Sagaing Region and Chin State, has shown me the significant challenges in maintaining operations. Due to the political situation, many field operations have been suspended, making it difficult for field workers to reach customers directly. Checkpoints on both sides and restricted access to certain areas have further hindered operations, limiting our ability to provide financial services effectively.
Safety has become a central issue around the country, especially in rural areas. Field workers trying to conduct their work around Myanmar experience threatening and terrorism risks on a daily basis. Many workers are now requesting life insurance and guarantees. Many field workers have resigned and are seeking other, less risky, work. This has left many many NGOs and INGOs unable to continue field operations, leading to fewer job opportunities for the rural population.
Safety and security of employment is also a growing concern in urban locations with workers requesting safety plans such as insurance and clarification of the employer's responsibilities if they are arrested, or other work-related incidents. As many employees are terminated or dismissed without prior notice, severance pay is becoming more important.
To escape from conflict, many people from various regions of Myanmar have fled their hometowns and relocated to larger cities, or in some cases abroad. As a result, a significant number of young people are unable to complete their studies, leading to an increasing number of unqualified workers entering the job market. And many professionals, as well as skilled young and adult workers, have left the country to seek work or study opportunities abroad.
Previously, skilled workers were spread out across the country, contributing to local economies in different regions and sectors. But currently, these workers are moving to the cities and increasing the pressure on urban job markets. This oversupply of labor in the cities, and the ‘brain drain’ from other areas of the country is causing significant challenges for the Myanmar job market.
Many of the internal migrants moving into the cities may also not have the desired skills for these urban jobs, creating a skills gap. Therefore employers in urban areas face difficulties in recruiting appropriately skilled workers, while rural areas lose their skilled workforce and are forced to terminate good employees due to dangerous working conditions.
A new military service law was announced in February 2024, with men aged 18-35 and women aged 18-27 now being required to serve for 2 years mandatory service.
Alongside the other issues with the current employment conditions, these conscription measures have led to many individuals to leave the country, for both work and study, again boosting the labor turnover rate.
The current situation has placed significant pressure on Myanmar's labor market, leading to a shortage of young professionals nationally, and particularly in rural areas. With new 44% tariffs from the US, the challenges are likely to grow.