Thai Employment Drops Amid Floods and Price Rises, Says Economic Council
Agriculture sector hit hardest by flood crisis, leading to 0.5% national job contraction; authorities urged to control essential goods prices
- Total employment in Thailand fell by 0.5% in the third quarter of 2025, as reported by the National Economic and Social Development Council.
- The decline was primarily driven by severe flooding, which caused a 2.9% contraction in jobs within the agricultural sector.
- The economic council has urged the government to control the prices of essential goods to protect purchasing power and provide urgent aid to flood-affected farmers.
The agriculture sector was hit hardest by flood crisis, leading to 0.5% national job contraction; authorities urged to control essential goods prices.
Thailand’s labour market experienced a slight contraction in the third quarter of 2025, driven primarily by severe flooding that devastated the agricultural sector and a slowdown in key non-agricultural industries.
The National Economic and Social Development Council (NESDC) announced on Monday that total employment fell by 0.5% year-on-year to 39.9 million people.
NESDC secretary-general Onfa Vejjajiva confirmed that while non-agricultural employment showed modest growth, the continuous decline in the farm sector—exacerbated by widespread floods—was the main factor dragging down overall figures.
Employment in the agricultural sector shrank by 2.9% due to the flood crisis, leading the NESDC to stress the urgent need to support affected farmers.
Conversely, the non-agricultural sector expanded by 0.6%. The transport and storage sector was the strongest performer, growing by 4.9%, followed by manufacturing (2.6%) and wholesale and retail trade (1.5%).
However, the hospitality (hotels and restaurants) and construction sectors saw contractions, dropping by 0.7% and 5.4% respectively.
The report also highlighted wage instability.
Although formal private sector wages rose slightly (1.3% to 1.6%), a 2.9% drop in average self-employed income resulted in an overall wage contraction of 0.3%, potentially weakening consumer purchasing power.
Unemployment and Policy Focus
The national unemployment rate saw a slight decrease to 0.76% (310,000 people). However, the number of discouraged workers—those willing and able to work but not actively seeking employment—rose by 8.7%, largely due to displaced agricultural workers.
The NESDC outlined two immediate policy priorities for the government:
Price Control: Authorities must supervise the pricing of essential goods and services to safeguard workers’ purchasing power amid rising living costs.
Farmer Assistance: Urgent measures are needed to aid farmers after the floods subside, including swift compensation payments and support for recovery efforts, such as providing new factors of production like seeds, fertilisers, and equipment.
