Socio- Economic Context and Employment Trends in Thailand. GUNJANAPORN SAIGAL Bureau of International Coordination MINISTRY OF Labour
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1 Socio- Economic Context and Employment Trends in Thailand by GUNJANAPORN SAIGAL Bureau of International Coordination MINISTRY OF Labour 24 July 2012
2 Thailand Economic s Situation in 2011 and Outlook in Major unpredictable factors that affected Thailand s economy in 2011 March 2011 earthquake and tsunami in Japan Slow down in world economy Severe flood
3 March 2011 earthquake and tsunami in Japan: Thai Economy 2.7 % contraction in the manufacturing sector (automotive sector fell by 23 %, overall exports grew by 19.2 %, slower than 27.3 % in the first quarter, imports of motor vehicles and parts were expanded by 3.7 % compared to 30.6 % in the first quarter
4 Slow down in world economy : Thai Economy Growth rate of the countries with high dependence on export especially ASEAN countries and developing countries including Thailand, tend to slow down
5 Severe Floods : Thai Economy Supply disruption in major industries such as automotive vehicles and parts, electronics and computers, which has intensity impacts on manufacturing sector, services sector, export, labour and tourism industry.
6 Economic growth for 2012 Expected to recover within the range of 5.5 to 6.5%, partly as a result of government stimulus measures such as increase in the minimum salary of 15,000 baht for government and state employees, 300 baht minimum wage and reduction of corporate income tax from 30% to 23 %, including measures to heal and restore the damage done since the beginning of 2012, measures to reduce taxes. for SMES and individuals, primary financial support etc.
7 Thailand s Economic Fact Sheet Source: NESDB (% YOY) (projection) GDP (billions US$) GDP Growth % Total Investment (at 1988 price) Private Public Total Consumption (at 1988 price) Private Public
8 Thailand s Economic Fact Sheet Source: NESDB (cont) (% YOY) (projection) Export of Goods (billions US$) Export Growth % Imports of Goods (billions US$) Imports Growth % Current account to GDP(%) Inflation-CPI (%) Unemployment rate
9 Social and Other Aspects Thailand is a constitutional monarchy. His Majesty King Bhumibol Adulyadej is a role model for living under the Philosophy of Sufficiency Economy. Thai society maintains good values and culture. Thai people have applied the Philosophy of Sufficiency Economy to their daily lives.
10 Social and Other Aspects (contd) Agriculture is the main source of income and food security. It generates various benefits such as being the source of job creation and food security, Local community is an effective mechanism for management and participation in better quality of life and welfare society.
11 Data on labour force (Yr 2011) Source:National Statistical Office working age or 15 years + 54 millions Working age millions Not in the labour force millions Employed person millions Unemployed person 0.26 millions Seasonal worker 0.19 millions household chores 4.65 millions study 4.32 millions too young/ old/ incapable of work 4.75 millions Others 1.37 millions
12 Labour Force Participation Rate classified by sex (source: National Statistic Office) 2007 : M= 81.09% W=64.17% 2008 : M= 81.23% W=64.52% 2009 : M= 81.31% W=64.66% 2010 : M= W=64.28% 2011 : M= 80.26% W=64.33% men women
13 Area of Challenges Public administration. Government sector need to effectively carry out policies and missions Economic structure. Thai economy is subject to the uncertainty in the world economy. Demographic structure has changed with older persons increasing,while younger and working populations have decreased
14 Area of Challenges (contd) Social values and traditions have deteriorated. Economic growth and globalization have led to increased materialism and consumerism. Natural resources and environment. The severe problems are resulting from geographical changes and overutilization
15 Area of Challenges (contd) National security Various problems of national security have been increasing due to political unrest, terrorism, economic crisis and international competitions. Moreover, severe natural and man-made disasters are likely to have greater impacts in the future.
16 Way forward During the Eleventh Plan ( ), Thailand will encounter more complicated domestic and external changes and fluctuations which present both opportunities and threats to national development. Thus, the plan emphasize on the nesessity to utilize the existing resilience of Thai society and economy, and to prepare both individuals and society as a whole to manage the impacts of such changes and pave the way toward well-balanced development under the Philosophy of Sufficiency Economy.
17 Interesting Data FYI Source:National Statistical Office - Average monthly Income per household was 23,544 baht (6 month of yr.2011) - Average monthly expenditure per household was 17,861 baht (6 month of yr.2011) - Average Amount of Debt per household was 136,562 baht (6 month of yr.2011) % of Thai population were under health insurance scheme, such as, with universal health coverage card 79.2 %, social security fund/providence fund 11.6 % and government health care scheme 8.8 % (yr 2011)
18 Thank You
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