Unemployment rises by 1.02% in third quarter
Decreasing employment in several industries and new graduates facing tougher times finding jobs cited as the main causes for drop
Thailand’s unemployment rate in the third quarter this year stood at 1.02%, increasing from 0.99% recorded for the same period in 2023, with about 410,000 Thais unemployed, a 3.2% increase year on year, the National Economic and Social Development Council (NESDC) said in its report on Thai society’s outlook for Q3/2024.
The third quarter unemployment rate is however an improvement over the 1.07% recorded in the previous quarter, which was a two-year high, NESDC said.
The report said that unemployment among those who have worked before increased 2.8% year on year, by around 180,000 people.
Meanwhile, unemployment among those who have never worked before jumped 3.5% year on year or by around 230,000 people.
Around 81,000 people have been unemployed for more than 1 year, increasing 16.2% compared to the previous year. 71.3% of this group have never worked before, and about three-quarters of this group are of generations Y and Z (aged 20-29 years).
NESDC said about 74,000 people have applied for unemployment benefits in the third quarter, 95% of whom formerly worked in the manufacturing sector.
Industries reported decreasing employment in automotive manufacturing, computer and electronic manufacturing, wholesale and retail, said the report, adding that one of the contributing factors is the shift in technology, e.g. from hard disk drives to solid state drives, and from internal combustion engine vehicles to electric vehicles.
The report found that on average, Thais worked 43.3 hours per week in the third quarter, increasing 2% YOY. Workers in the private sector clocked in at 47.4 hours per week on average, increasing 2.7% year on year.
Average wages in Q3 this year stood at 15,718 baht per month, increasing 1.8% year on year, thanks to the raising of the minimum wage in selected provinces, said the NESDC.
In the private sector alone, average wages are 14,522 baht per month, increasing 2.7% year on year.
NESDC is advising Thai workers to improve their skills and boost their digital knowledge to reduce unemployment. The council is also concerned that more SMEs will cease operations due to economic woes, including the lack of loans and high interest rates.
