Chamber predicts 7 million Thai people to be jobless by June

The Joint Standing Committee on Commerce, Industry and Banking have predicted that 7 million people will be jobless in Thailand by June. The dire prediction from the chairman of the JSCCIB Supant Mongkolsuthree.

“Low wage workers will be affected the most by the layoffs, an estimated of 4.2 million retail and shopping mall workers will lose their jobs, along with 1 million construction workers, 978,000 hotel workers, 250,000 restaurant workers, 200,000 spa and massage workers and 200,000 garment factory workers.”

“Thailand’s labour market currently employs about 38 million workers and the JSCCIB is still assessing the outbreak’s impact on employment in the automotive and electronics sectors, as well as at department stores.”

The JSCCIB panel forecasts an export decline of 2% and inflation of 0.8 – 1.2% while maintaining a 2 – 2.5% GDP growth forecast. The committee also expects an 8.5 – 10% drop in exports this year.

Despite the government approving the 1.9 trillion baht economic stimulus package, the JSCCIB expects the economy to enter a recession, with estimations that the outbreak will cost the economy more than a trillion baht.”

Chairman of the Thai Chamber of Commerce Kalin Sarasin, is calling on the government to support employees taking leave without pay to self quarantine.

The government must help companies considering laying offs to keep their workers through provisions of the Social Security Act, with the government paying 50% of wages and companies paying 25% for workers who are earning below 15,000 baht a month.

SOURCE: Bangkok Post