Conflicts may raise unemployment rate: TDRI
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Prolonged political conflicts could result in an increase in the unemployment rate, warned a researcher at Thailand Development Research Institute (TDRI).
Yongyuth Chalamwong said that due to slow recovery in global economy and a slump in domestic consumption and investment, the Thai economic condition should remain unfavourable until the second quarter.
However, if domestic political tension does not ease soon, more workers would face layoffs and the unemployment rate could rise.
He noted that if the gross domestic product (GDP) expands below 4 per cent, Thailand's unemployment rate could exceed 1 per cent from 0.7-0.8 per cent at present.
If the situation remains unfavourable for six or 12 more months, the negative impacts on workers would be clearer particularly those in the sensitive sectors like the manufacturing and service sectors.
He also warned that foreign investors could also delay new investment or shift investment to other countries in the second half of this year. The impact would be huge particularly in the electrical and electronics sector, which now employs over 300,000 workers.
