Employment improved in the first quarter of 2023

Chatrudee Theparat

Employment improved in the first quarter of 2023

The labor situation in Thailand has shown remarkable improvement compared to the same period in the previous year, attributed to the expansion of employment opportunities both within and outside the agricultural sector.

Danucha Pichayanan, secretary-general to the National Economic and Social Development Council(NESDC) said the unemployment rate has reverted to normal levels, accompanied by a noticeable rise in overtime work and higher wages.

The number of people employed reached 39.6 million, a 2.4 % increase compared to the same period in the previous year. This rise can be attributed to employment expansion in both the agricultural and non-agricultural sectors.

The agricultural sector expanded by 1.6 % due to increased cultivation areas, while non-agricultural sectors such as wholesale and retail trade, hotels, and restaurants experienced a 2.7 % expansion.

These sectors have benefited from the ongoing economic recovery and the continuous growth of the tourism industry. However, there has been a slight decline in employment within the manufacturing sector, while the transportation/freight and construction sectors contracted by 7.2 percent and 1.6 percent, respectively.

Working hours increased, with overall and private sector working hours at 41.4 and 44.3 hours, respectively. The number of employees working overtime increased by 12.4 % to over 6.4 million people, while the quasi-unemployed decreased by 11.3 %.

The unemployment rate improved continuously and was at 1.05 %, with 421,144 unemployed individuals. The following issues need to be monitored:

1) The shortage of digital and IT professionals as society transitions into the digital era.The demand for IT-related positions annually ranges from 20,000 to 30,000, yet there is an insufficient number of graduates in this field to meet the demand.

2) The potential impact of the El Niño phenomenon on the income and employment of agricultural labor. This phenomenon can adversely affect cultivation and agricultural productivity.

3) The job selection behavior of the younger generation, particularly with regard to seeking high remuneration and balanced lifestyle.