Thai Ministry of Labour assessing impact of Trump election victory
Ministry assessing potential impact on Thailand, particularly in terms of employment
Phumiphat Mueanchan, spokesman for the Ministry of Labour, said on Sunday that Minister of Labour Phiphat Ratchakitprakarn has instructed the permanent secretary of the ministry and relevant officials to monitor the labour situation closely after Donald Trump's victory in the US presidential election.
The ministry is assessing the potential impact on Thailand, particularly in terms of employment, considering both direct and indirect effects related to the new US president-elect’s security and economic policies.
Additionally, a comprehensive plan is being developed to address the situation, covering employment, skills development, compensation for layoffs, and the rights and benefits of both employers and employees.
Preliminary analysis suggests that Trump's "America First" policy could affect Thai exports, particularly such products as hard-disk drives, semiconductors, tyres, air-conditioners and solar panels, which may face higher tariffs or increased demand for skilled labour. This will require both employers and employees to prepare for potential challenges.
Thailand may also benefit in some areas from the relocation of manufacturing bases or direct investments, particularly in the automotive and electronics sectors, which are likely to grow in Thailand and elsewhere in the ASEAN region. This could have a positive impact on Thai labour employment.
However, Chinese electric-vehicle manufacturers setting up production bases in Thailand may face challenges that could have ripple effects on Thai workers.
Additionally, Thai manufacturers in the construction-materials sector, especially steel, chemicals, textiles and apparel, are expected to face increased competition from Chinese products, as China looks for new export markets. The Ministry of Labour says it will closely monitor the impact on Thai workers in this regard.
Importantly, Thailand will need to stay vigilant regarding conflicts in the Middle East, which could influence US security policies and, by extension, affect the global labour market.
