Thousands of jobs at risk as firms stay closed

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Thousands of jobs at risk as firms stay closed

Petchanet Pratruangkrai
The Nation

Some flood-affected companies have not reopened, as others brace for wage hike

BANGKOK: -- About 164,500 employees of flood-affected enterprises are at risk of losing their jobs this year as 284 firms have not yet reopened after last year's inundation, while the upcoming increase in the daily minimum wage could aggravate the situation, according to a report by the Office of the National Economic and Social Development Board (NESDB).

Industries where there is a high possibility of downsizing are automobile manufacturing, office machinery, electronics, electronic appliances, textiles and garments, machinery, television and radio appliances, rubber, chemical products, plastics, household equipment and petrochemical goods.

Arkhom Termpittayapaisith, head of the state think-tank, yesterday said the authorities must closely monitor the employment situation during the remainder of the current quarter, as many enterprises could adjust their operations in preparation for the 39.5-per-cent rise in the minimum wage in April.

The Labour Ministry's project to relieve the impact on workers affected by the flooding crisis ends this month, which could lead to more unemployment in following months, he said.

However, Arkhom still believes overall unemployment will not rise this year thanks to expected positive economic growth, besides which many sectors still face labour shortages.

"We estimate that the unemployment rate by the end of this year will not increase from last year, although there will be many challenging factors to monitor and some disguised unemployment may be seen," the NESDB chief said.

Arkhom said the increase in the minimum wage to Bt300 per day, starting in seven provinces, would encourage businesses of all sizes to increase their efficiency and adopt new technology.

Some enterprises may choose to terminate the employment of some workers as a last resort, but most would strive to boost their capability and operations to maintain their workforce, he added.

To help assure employment levels are maintained, Arkhom said the government should have training projects to support the development of skilled labour, and arrange matching between employers and their potential employees.

The NESDB reported that unemployment last year had grown by 1.1 per cent, while the number of unemployed was about 200,000, or 0.7 per cent of the potential workforce.

Real labour income in the fourth quarter improved by 3.2 per cent, and average annual incomes were up by 2.8 per cent, representing slow growth from 2010.

Suwannee Khamman, deputy secretary-general of the NESDB, said the labour market in general was still tight.

However, when classified by the number of working hours by sector, there are a large number of economically inactive workers, especially among unskilled labourers in agricultural industries, she said, adding that this suggests educational development is needed to produce workers in fields demanded by the labour market.

The report also showed that Thailand faced serious social problems last year due to an increase in the level of inappropriate material available online, especially among children and youth.

It also said the number of young Thai mothers had continued to rise, with the highest growth rate in Asia. The birth rate among females below 20 years of age rose from 13.55 per cent in 2009 to 13.76 per cent in 2010.

Meanwhile, the number of criminal cases increased last year, particularly for serious drug offences, with drug-related arrests increasing 30 per cent from 2010.

Thais aged 15 years and over were reported to have an alcohol-consumption rate nine times the world average, and young people aged 15 to 24 need to be closely monitored, the report said.

 The Nation 2012-02-28

[Prakhonchai Nick]

"The NESDB reported that unemployment last year had grown by 1.1 per cent, while the number of unemployed was about 200,000, or 0.7 per cent of the potential workforce."

If the number of unemployed (and probably unemployable) young lads in my village is anything to go by, the total number of unemployed countrywide is more likely to be several million and not 200,000!   

[Vombatus]

"The NESDB reported that unemployment last year had grown by 1.1 per cent, while the number of unemployed was about 200,000, or 0.7 per cent of the potential workforce."

If the number of unemployed (and probably unemployable) young lads in my village is anything to go by, the total number of unemployed countrywide is more likely to be several million and not 200,000!   

UK 'young person employment rate falls to 66%'.

I suppose that is government jargon for one-third being unable to find work.

It seems to me that there are a lot more Thai youngsters doing fcuk all by comparison. (I don't count the red-waistcoated staff in Big C as 'unemployed' even though they do fcuk all!).

Do monks, flower sellers, lottery sellers and street vendors count as 'employed' ?

[Prakhonchai Nick]

"The NESDB reported that unemployment last year had grown by 1.1 per cent, while the number of unemployed was about 200,000, or 0.7 per cent of the potential workforce."

If the number of unemployed (and probably unemployable) young lads in my village is anything to go by, the total number of unemployed countrywide is more likely to be several million and not 200,000!   

UK 'young person employment rate falls to 66%'.

I suppose that is government jargon for one-third being unable to find work.

It seems to me that there are a lot more Thai youngsters doing fcuk all by comparison. (I don't count the red-waistcoated staff in Big C as 'unemployed' even though they do fcuk all!).

Do monks, flower sellers, lottery sellers and street vendors count as 'employed' ?

Not just in Big C, but Thai Watsadu, Do Home and IQ, where there are hundreds of girls "employed" who spend most of the day powdering their noses, and know nothing about the products they attend.

I suppose anyone obtaining money for services rendered is technically employed. Not sure where Monks stand, other than they fleece the Thai  public of huge amounts of cash!