The labor market in Southeast Asia has several complicated issues, including the quick changes in the economy, the various behaviors of employees, and the shifting regulatory settings. To foster sustainable regional development and make decisions based on accurate information, a comprehensive risk assessment is important. Conventional methodologies, on the other hand, often fail to reflect the multifaceted personality of issues about the labor market. In light of recent economic changes and the complexity of applicable policies, this paper recommends a fuzzy decision support system to enhance risk assessment (FDSS-ERA) that could enhance risk assessment in Southeast Asian labor markets. The model methodically assesses hazards, using a mixture of fuzzy logic sense and decision assistance, incorporating changes in employment trends and demographics. The results highlight fuzzy logic’s role in decision-making for effective risk management and policy interventions, showing improved risk comprehension. While educated policy choice making can lead to equitable development in Southeast Asia’s labor work marketplace, FDSS is a potential method. In conclusion, to overcome the many obstacles that stand in the way of chance assessment in the labor market in Southeast Asia, FDSS provides a powerful strategy. Because it offers more advanced analytical tools, this research assists decision-makers in the region in developing more effective guidelines, proactively reducing risks, and achieving projects that promote sustainable development.