Wage policy may pressure employment: NESDB
Despite the 0.9 per cent increase in fourth-quarter employment, some risks to Thai workers persist particularly the higher minimum wage, according to the National Economic and Social Development Board.
Arkhom Termpittayapaisith, secretary-general of the think tank, said at a press conference today that higher wage may encourage factories to lay off workers. This will exacerbate the situation, as flood-hit factories have not yet welcomed back all workers laid off during the flood.
At present, 164,552 workers are still waiting to return to their flood-hit factories.
He noted that workers in the automotive, office equipment, electronics-electrical appliances, textiles and apparel, machinery, broadcasting, rubber and chemicals industries are at high risk of losing jobs.
"The higher wage would pressure workers and operators to boost efficiency," Arkhom said.
According to the think tank, workers earning less than Bt300 a month are numbered 5.1-6.9 million. If the minimum wage policy is in place, operators would see the labour cost rise by 6.2-10.2 per cent or Bt6.7-Bt11.1 billion.
In the fourth quarter of 2011, the unemployed were numbered 245,890, or only 0.6 per cent of workforce. Though the economy contracted 9 per cent, employment increased 0.9 per cent, due to demand from construction and retailing businesses. In the quarter, actual wage rose 3.2 per cent while the annualised increase went up 2.8 per cent.
Throughout 2011, average unemployment rate was 0.7 per cent.
