Thailand’s National Economic and Social Development Council (NESDC) has sounded the alarm over rising unemployment risks as companies restructure and reduce permanent staff.
The warning appeared in the council’s Thailand’s Social Outlook report for the second quarter of 2025. NESDC Secretary-General Danucha Pichayanan said the agency is witnessing a clear shift in employment patterns driven by economic volatility.
A 2024 Jobsdb survey showed more than 25 percent of Thai firms plan to cut staff and reorganise operations. Instead of full-time hires, many businesses are relying on permanent part-time and contract workers.
Danucha warned that the shift threatens job security, incomes, and workers’ legal rights, urging regulators to enforce 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.”
The proportion of permanent part-time employees in medium and large firms rose from six per cent in 2022 to 42 per cent in 2024. Contract and temporary part-time roles increased from four per cent to 28 per cent over the same period.
Danucha also highlighted external pressures, including new US import tariffs that threaten Thai exports. He said the government must secure new markets and safeguard domestic goods, as tariff reductions on thousands of US farm products will weaken competitiveness.
Labour shortages are adding strain. About 388,000 foreign workers have not renewed permits, while Cambodia’s repatriation measures pose further risks.
Construction, manufacturing, and agriculture are most affected. The Cabinet has responded by approving new worker imports from Sri Lanka, Nepal, the Philippines, and Indonesia.
The report further flagged rising workplace accidents. Though severe cases are limited, a Silpakorn University study found injuries such as loss of a limb can sharply reduce a worker’s socio-economic standing.
Danucha urged firms to maintain equipment, provide safety training, and ensure compensation covers the ‘opportunity cost’ of such injuries.
Despite these concerns, the labour market remained broadly stable in Q2 2025. Non-agricultural jobs grew slightly while agricultural employment declined.
The unemployment rate fell to 0.91 percent, down from 1.07 percent a year earlier, though discouraged workers climbed to 2.1 million.
