Thai graduates face high unemployment despite stable job market

Thailand’s unemployment rates reveal a concerning trend among university graduates, with 65% unable to secure employment. Long-term unemployment has risen by 16%, and a significant 71.3% of the unemployed have never worked before.

Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC), announced the findings from the third quarter of 2024, highlighting a relatively stable employment scene.

Approximately 40 million people are employed, a slight decrease of 0.1% from the same period in the previous year. The unemployment rate edged up to 1.02% from 0.99% in the prior quarter.

The current number of unemployed individuals averages 414,000, which is lower than the previous quarter’s 429,000 but surpasses the 401,000 during the same quarter last year.

Breaking down the unemployment data by educational level, the majority are those with higher education degrees, followed by high school and middle school graduates. Long-term unemployment, defined as being jobless for over one year, increased by 16.2% compared to the same period last year, totalling 81,000 individuals.

Of these, 65% cite an inability to find work as the reason for their unemployment, and 71.3% have no prior work experience. Notably, nearly three-quarters of this group are aged between 20 and 29.

The unemployment rate within the formal sector stands at 1.82%, a decline from last year’s rate of 1.93%. There are 74,000 individuals claiming unemployment benefits, with over 95% of them coming from the manufacturing sector.

Danucha stated that the employment situation remains largely stable but the challenges faced by graduates highlight a need for targeted interventions. She further stated that addressing these unemployment issues requires a multifaceted approach, integrating educational reform, skill development, and industry collaboration

The issue of unemployment among university graduates is particularly alarming, as it reflects a mismatch between educational output and market demand. The increase in long-term unemployment suggests persistent barriers to entry for young job seekers, who are struggling to find suitable roles in an evolving economic landscape.

This data comes amidst wider economic challenges and raises questions about the effectiveness of current job creation strategies and the potential need for reforms in educational or vocational training to better align with industry needs, reported KhaoSod.