JSCCIB presses Thai government as labour shortage crisis hits economy

The Ministry of Labour has moved in response to the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) after the private sector complained that a “labour shortage” crisis was causing the economy to stumble.

Labour Minister Julapun Amornvivat has ordered an overhaul of the registration system to reduce obstacles and bring workers outside the system back under the law, while also considering expanded cooperation with Indonesia, the Philippines and Sri Lanka to fill gaps in the construction and tourism sectors.

Private sector tells state economy is stumbling because of a ‘labour shortage’
Thailand’s labour shortage problem is showing increasingly serious signs.

Most recently, Poj Aramwattananont, chairman of the Board of Trade of Thailand, led the JSCCIB in submitting a letter to the Prime Minister, asking the government to urgently resolve the problem.

Julapun represented the Cabinet in receiving the letter in person.

Julapun acknowledged that the structure of the Thai economy is now “slowing and facing bottlenecks” in several dimensions, particularly in key sectors such as construction, agriculture and services, which lack the workforce needed to drive activity.

He said this was a direct responsibility of the Ministry of Labour, which must accelerate efforts to solve the problem so the economy can begin moving again.

Ministry of Labour sets out three approaches to the labour crisis
In response to the private sector’s proposals, the Minister of Labour outlined three areas of work that must be accelerated immediately, as follows:

Push ahead with MOUs to import migrant workers from four countries

The government confirmed that it would continue to accelerate memoranda of understanding (MOUs) on labour imports between Thailand and four neighbouring countries, Myanmar, Laos, Cambodia and Vietnam.

Although border-related obstacles arose over the past year, Julapun stressed that these were government-to-government issues, not problems involving the public, and that labour imports under the MOU system remained highly necessary.

Overhaul the “migrant worker registration” system to reduce obstacles that push workers out of the system

Thailand’s registration system has involved cumbersome procedures, which have effectively “pushed” some workers out of the system and into illegal employment.

The Ministry of Labour, therefore, aims to:

• Improve the registration system to make it more convenient and faster, while reducing restrictions
• Bring all workers back into the proper legal system
• Support security, inspection and comprehensive welfare and protection

Transform Thai labour through upskilling/reskilling to avoid technology disruption

For Thai workers, the major problem is that “job matching is not aligned”, or that skills do not match market demand.

The Ministry of Labour is therefore preparing to roll out skills development through upskilling and reskilling, focusing on helping Thai workers transition into high-skilled labour capable of using AI technology and innovations to support changing global trends.

JSCCIB proposes a new option, eyeing labour imports from Indonesia, the Philippines and Sri Lanka

Beyond reliance on workers from the existing neighbouring countries, whose numbers are tending to decline, the private sector has also proposed a new idea for the state to consider by expanding labour cooperation with additional countries, including:

• Indonesia
• the Philippines
• Sri Lanka

Opening new labour markets would increase options and spread risk for Thai operators, particularly in the industrial and services sectors, which still require large numbers of workers in the formal system, in order to strengthen competitiveness and support the future growth of the Thai economy.