Economic Trends Impact Employment in Thailand
Rising Unemployment and Industry Challenges Amid Factory Layoffs and Economic Pressures
Thailand's labor market faces significant disruptions, with unemployment reaching 414,000 in the third quarter, a slight increase from 401,000 in the previous year, according to the National Economic and Social Development Council (NESDC).
Notably, the manufacturing sector, particularly automotive, is under pressure as global competition and economic challenges intensify.
Key developments include Nissan's plan to cut or relocate 1,000 workers, and Suzuki's intention to shut its Rayong manufacturing base by 2025, affecting local employment.
Factory closures worsened the situation, with 667 closures and 17,674 job losses recorded in the first half of the year.
Government plans for a minimum wage hike and declining domestic car sales further strain employment figures, with some companies reducing overtime and work shifts to manage costs.
Chairman of the Federation of Thai Industries, Kriengkrai Thiennukul, highlighted that rising imports from countries like China contribute to an uncompetitive environment for Thai manufacturers.
The Manufacturing Production Index decreased by 0.91% year-on-year in October, indicating declining production, while high household debt curtails consumer spending.
Despite these challenges, some sectors like hotels and restaurants showed growth, driven by tourism.
In Phuket, hotel employment has fully resumed with a 6.1% expansion in the third quarter, as hotels offer competitive salaries by restructuring human resource management.
The IT sector sees mixed trends.
While global tech companies adjust staffing levels, a growing cybersecurity market supports job expansion.
However, economic uncertainty prompts businesses to adjust by cutting management costs or diversifying roles.
The Thai Chamber of Commerce cautions that the global economic slowdown impacts multiple sectors, including technology and automotive, advocating a careful approach to planned wage hikes to avoid further layoffs.
They suggest a 'Pay by Skills' scheme to encourage skill development for long-term employment and income growth.
Notably, the manufacturing sector, particularly automotive, is under pressure as global competition and economic challenges intensify.
Key developments include Nissan's plan to cut or relocate 1,000 workers, and Suzuki's intention to shut its Rayong manufacturing base by 2025, affecting local employment.
Factory closures worsened the situation, with 667 closures and 17,674 job losses recorded in the first half of the year.
Government plans for a minimum wage hike and declining domestic car sales further strain employment figures, with some companies reducing overtime and work shifts to manage costs.
Chairman of the Federation of Thai Industries, Kriengkrai Thiennukul, highlighted that rising imports from countries like China contribute to an uncompetitive environment for Thai manufacturers.
The Manufacturing Production Index decreased by 0.91% year-on-year in October, indicating declining production, while high household debt curtails consumer spending.
Despite these challenges, some sectors like hotels and restaurants showed growth, driven by tourism.
In Phuket, hotel employment has fully resumed with a 6.1% expansion in the third quarter, as hotels offer competitive salaries by restructuring human resource management.
The IT sector sees mixed trends.
While global tech companies adjust staffing levels, a growing cybersecurity market supports job expansion.
However, economic uncertainty prompts businesses to adjust by cutting management costs or diversifying roles.
The Thai Chamber of Commerce cautions that the global economic slowdown impacts multiple sectors, including technology and automotive, advocating a careful approach to planned wage hikes to avoid further layoffs.
They suggest a 'Pay by Skills' scheme to encourage skill development for long-term employment and income growth.
