Outbreak, drought leaving millions unemployed
The impact the Covid-19 crisis and drought have had on job figures will only be apparent in the second quarter and will be clearer in the second half of the year, according to the National Economic and Social Development Council (NESDC).
The council’s report on Thailand’s social situation and outlook for the first quarter showed that more than 8 million people face the risk of losing their job, owing to the spread of Covid-19.
Those facing unemployment can be divided into three groups:
1. Some 3.9 million workers in the tourism sector who have been affected by the drop in domestic and foreign tourist numbers;
2. Workers in the industrial sector, which was already hit hard by the US-China trade war and is further suffering from a drop in both domestic and foreign demand due to the pandemic. However, some industries, such as the producers of food and beverage or necessary items are still growing;
3. Some 4.4 million people working in fresh markets, sports stadiums or shopping malls, stand to lose their jobs due to lockdown measures.
Meanwhile, the drought crisis is expected to affect up to 6 million farmers and 370,000 seasonal workers – the highest in seven years.
However, NESDC believes the rate of unemployment this year will be in the range of 3 to 4 per cent or no more than 2 million people because the Covid-19 pandemic appears to be under control.
Also, the council said, the government has started easing control measures and allowing some economic activities to start again. The government has also come up with measures to help the economy recover by focusing on creating jobs, while the agriculture sector should also be able to provide some jobs despite the drought.
