Shortage of labour in the service and construction sectors: NESDC
The National Economic and Social Development Council (NESDC) is warning of a significant shortage of labour in the service and construction sectors, with demand for workers as high as 13 million people.
Labour shortages have been a major problem this year, especially in the service sector, which is vital to the Thai economy. In 2022, the service sector was valued at 10.20 trillion baht, accounting for 58.7% of Thailand’s gross domestic product (GDP) and employed 20.80 million people, accounting for 53% of total employment.
Sectors with significantly high employment rates are defined as:
The hotels and food service sector which employed 2.91 million people, accounting for 13.98% of service sector employment, divided into:
Employment under the social security system: 1.51 million people or 51.9%
Employment outside the social security system: 1.40 million people, or 48.1%
The construction sector employs 2.20 million people, accounting for 10.60% of service sector employment, divided into:
Employment under the social security system: 1.16 million people or 52.7%
Employment outside the social security system: 1.04 million people or 47.3%
Last year's data from a Labour Ministry survey of labour demand in business establishments revealed the service sector needed 12.24 million people, accounting for 78.6% of the total labour demand.
When classified by industry, the hotels and food service sector had a labour demand of 1.69 million people, accounting for 13.8% of the service sector's labour demand. The top 5 provinces with the highest labour demand include major tourist cities:
Bangkok (accounting for 28.91%)
Chonburi (4.9%)
Phuket (4.6%)
Chiang Mai (4%)
Surat Thani (4%)
Meanwhile, the construction sector had a labour demand of 1.32 million people, accounting for 10.76% of the service sector's labour demand. The top 5 provinces with the highest labour demand include:
Bangkok, accounting for 29.76%
Chonburi (4.44%)
Chiang Mai (2.38%)
Nakhon Ratchasima (1.79%)
Songkhla (1.73%)
These figures reflect that while the service sector, particularly the tourism-related sector, is showing signs of recovery, the labour market is still unable to produce an adequate workforce to meet that demand. The NESDC therefore recommends that government should prioritise measures to address this issue, ensuring an adequate workforce to support the recovery of the tourism and related service sectors, as well as the construction sector.
