Job jolt: Thailand’s unemployment hits two-year high at 1.07%

Thailand’s unemployment rate surged to a two-year high, with 1.07% of the workforce out of a job, the National Economic and Social Development Council (NESDC) revealed. The rise marks the highest level of unemployment since the Covid-19 pandemic waned, showing a worrying trend in the nation’s job market.

Danucha Pichayanan, NESDC Secretary-General, reported that the rate had climbed slightly from 1.06% during the same period last year. A total of 430,000 people were unemployed in the second quarter, with the agricultural sector taking the hardest hit.

The number of employed individuals in Thailand dropped by 0.4% to 39.5 million, driven by a steep 5% decline in agricultural jobs due to severe drought conditions. Despite this, employment outside of agriculture rose by 1.5%, offering a glimmer of hope in an otherwise bleak report, said Danucha.

“The drought has forced many farmers to halt planting, contributing to the decrease in agricultural employment.”

The NESDC also raised concerns about future job losses, warning that severe flooding in north and central Thailand could further impact the agricultural sector.

In a slight silver lining, the number of long-term unemployed individuals has fallen to approximately 70,000. However, the unemployment rate among workers with social security remains high at 1.92%. The council also noted that 230,000 workers sought unemployment aid in the second quarter, a 7.8% decrease from the previous year.

Danucha advised Thai workers to enhance their skills and digital knowledge to better withstand the economic challenges. He also expressed concern over the potential collapse of more small and medium-sized enterprises (SMEs) due to economic difficulties, including high interest rates and limited access to loans, reported The Nation.

In related news, over 400,000 individuals, representing approximately 1% of the working-age population, were unemployed during the first quarter of the year, with the primary reason being voluntary resignation.

Piyanuch Wuttisornon, the Director-General of the National Statistical Office (NSO), announced the findings from a survey on the working-age population. The results indicated a decrease in unemployment numbers for the first quarter compared to the same period last year.