Employment/NESDB

Chatrudee Theparat

The National Economic and Social Development Council (NESDC) warned the country is likely to face employment slowdown, hit by trade barriers via tariff measures of the US.

Danucha Pichayanan, NESDC secretary general , said such issues should be under monitor, which is likely to send a direct impact on Thailand’s exports and employment.

“Thailand is considered to be at relatively high risk following the re-election of Donald Trump as U.S. President, the tariff imposition is expected in electrical and appliances, automotive and part, machinery and computer. Thailand had a trade surplus worth US$ 43 billion in 2023 to the US. Currently, those sectors employ 1.2 million.”

Additionally, Thailand continues to face challenges in managing human trafficking, having been ranked in Tier 2 of the U.S. Trafficking in Persons Report since 2022”

Danucha Pichayanan

The labour sector should strengthen the inspection and regulation of foreign workers is essential to prevent illegal employment. Despite existing measures under the MOU for importing and renewing foreign workers, numerous cases of labor law violations by both businesses and foreign workers persist, and a significant number of pregnant women do not take their full maternity leave, with most using only 30-59 days out of 98 days. This was due to financial concerns, the need for overtime pay, and fears of bonus reductions despite the recommendation from the World Health Organization (WHO) to provide breastfeeding for the first six months.

NESDC reported the labor situation in the fourth quarter of 2024 contracted, due to a continued decline in employment in the agricultural sector. In contrast, non-agricultural sectors expanded, with an increase in overtime workers.

In the fourth quarter of 2024, the number of employed persons stood at 40.1 million, a slight decrease of 0.4 % compared to the same period in 2023. This was due to a continued contraction of 3.6 % in agricultural sector employment.

In contrast, the non-agricultural sector expanded by 1.1 %, particularly in the hotel/restaurant sector which grew by 9.4 % and the transportation/storage sector, which benefited from the recovery of exports.

The manufacturing sector expanded by 0.3 %, driven by growth in the food, clothing, and electrical equipment sectors. However, employment in the computers and electronics, automobiles, and chemicals and chemical products productions continued to decline.

Total working hours increased in the fourth quarter of 2024, with employees in all sectors working an average of 42.8 hours per week, while those in the private sector worked 47.3 hours per week. Overtime workers rose by 1.5 %. However, the number of quasi-unemployment and underemployed individuals also grew by 1.9 % and 6 %, respectively.

The unemployment rate increased to 0.88 %, equivalent to 360,000 unemployed persons. In 2024, the employment rate was at 98.6 %, remaining stable from 2023. The total number of employed persons was 39.8 million, a slight decrease of 0.3 % from the previous year. The unemployment rate for 2024 was 1 %.