Thailand Faces Growing Job Insecurity as Companies Cut Full-Time Staff
The National Economic and Social Development Council warns of rising unemployment risks as over a quarter of firms restructure and switch to part-time and contract work
- Thailand's economic council is warning of rising job insecurity as companies increasingly cut full-time permanent staff in favor of part-time and contract-based workers due to economic uncertainty.
- This shift is reflected in a 2024 survey where over 25% of Thai companies indicated they are likely to cut staff and restructure operations.
- Data shows a dramatic increase in non-permanent roles from 2
Thailand's National Economic and Social Development Council (NESDC) has issued a stark warning about the rising risk of unemployment as Thai businesses increasingly restructure their operations and reduce their permanent workforces.
The alert was made public in the council’s "Thailand's Social Outlook" report for the second quarter of this year.
Danucha Pichayanan, the NESDC's Secretary-General, revealed that the agency is observing a clear shift in employment models due to the volatile economic climate.
A 2024 survey by Jobsdb found that over 25 per cent of Thai companies are likely to cut staff and reorganise their operations.
Instead of hiring full-time, permanent employees, these businesses are opting for permanent part-time and contract-based workers.
This trend, Danucha explained, could seriously impact job security, income levels, and workers' legal rights. He urged relevant authorities to ensure that companies adhere to labour laws.
"From now on, the model of employment will change, moving away from full-time and part-time roles and using more contract staff, especially within large organisations," Danucha stated. "This trend has been increasing since 2013, a direct result of economic uncertainty. It will have a significant effect on the job security and income of employees, who may also not receive their full legal benefits."
Data from 2022 shows that part-time permanent employees accounted for six per cent of the workforce in medium and large firms.
By 2024, this figure had surged to 42 percent. Similarly, the proportion of contract and temporary part-time staff increased from four per cent in 2022 to 28 percent in 2024.
Danucha also highlighted the ongoing threat posed by new US import tariffs, which are set to affect Thai exports.
He said the government should support new market access and introduce protective measures for Thai goods, particularly as the country is required to reduce tariffs to zero per cent on thousands of US agricultural imports, which will reduce their competitiveness.
Another pressing issue is the shortage of foreign workers. Approximately 388,000 foreign workers have failed to renew their work permits, while mandatory repatriation measures by the Cambodian government pose a further risk.
This has left the construction, manufacturing, and agricultural sectors facing a potential labour deficit. In response, the Thai Cabinet has approved the import of additional workers from countries including Sri Lanka, Nepal, the Philippines, and Indonesia.
The report also flagged a rising trend in workplace accidents, noting that while the proportion of severe incidents is low, a study by Silpakorn University found that injuries like losing a hand or arm can lead to a significant decline in a worker's socio-economic status.
Danucha recommended that companies regularly maintain equipment, provide safety training, and ensure compensation considers the 'opportunity cost' of such injuries.
Overall, the labour market remained stable in the second quarter of 2025. Employment in non-agricultural sectors saw slight growth, while the agricultural sector continued to shrink.
The unemployment rate fell to 0.91 percent from 1.07 percent in the same quarter last year, but the number of discouraged workers increased to 2.1 million.
