Thailand’s Job Market Grapples with Uneven Recovery

Tourism rebounds, but SMEs struggle, and underemployment rises.

Despite a recovering tourism sector in Thailand, employment figures are still falling, especially for temporary workers in the hospitality industry. Concurrently,underemployment is increasing,signaling deeper economic challenges.

downturn Hits Small Businesses Hard

More than 24,000 SMEs and 1,234 factories have recently shuttered, significantly reducing job opportunities. The NESDC emphasizes the critical need for businesses to adapt to the changing economic landscape.

Underemployment on the rise

A rise in underemployment, where individuals work fewer hours than desired or in positions below their skill level, is particularly noticeable in the trade and service sectors.Average weekly working hours have increased slightly to 40.8, up from the previous quarter.

Government Urged to Act

The government is being urged to prioritize technology adoption, innovation, and workforce upskilling to prepare for future labor market shifts. Initiatives focused on lifelong learning and skill advancement will be expedited to ensure new graduates are well-prepared for the evolving job market.

Economic Slowdown Blamed

The broader economic slowdown is largely responsible for the current trends. According to a recent report by the World Bank, Thailand’s economic growth is projected to be around 3% this year, facing headwinds from global uncertainties and domestic challenges (World Bank).

Looking Ahead

The NESDC views business adaptation as an urgent priority, especially among SMEs with high employment rates. The focus on technology adoption and workforce upskilling is seen as crucial for navigating the changing economic environment and ensuring future job creation.