New NESDB report points to slowing economy, political uncertainty, labour shortage as problems
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A slowing economy combined with political uncertainty may affect the investment climate, which in turn would mean slower job creation, the Office of the National Economic and Social Development Board (NESDB) has warned, also noting the shortage of low-ski
In a report released yesterday on Thailand’s social conditions in the third quarter of this year, it noted the need to import workers from neighbouring countries to work in specific sectors. However, that process takes time and, if foreign workers move around, they have to be re-registered, which results in costs that limit the operations of affected businesses.
This limitation prolongs and worsens the shortage of low-skilled labour. Thus planning for and managing the import of foreign workers must be done in advance. Businesses should also consider the use of technology as a substitution for labour.
In the third quarter, employment decreased by 1.2 per cent, a reduction seen in both the agricultural and non-agricultural sectors, the report said.
The unemployment rate increased to 0.77 per cent because of the economic slowdown, hitting both the previously employed and new entrants to the workforce. The number of job applicants rose faster than the number of jobs available. However, some of this was considered seasonal, occurring during the cultivation period.
Despite the higher jobless rate, it was considered still to be too low to affect the overall economy and economic stability, said the NESDB report.
Wages and salaries in the private sector, excluding overtime and other benefits, rose by 11.1 per cent compared with the third quarter of last year. Prices also increased by 1.7 per cent year on year, leading to a rise in real wages and salaries in the private sector by 9.3 per cent. Labour productivity rose by 3.9 per cent as well.
