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Thailand: Productivity grows, but unemployment reaches 1%
The National Economic and Social Development Board (NESDB) has reported positive developments in income and labour productivity in the fourth quarter and for the whole of 2016.
Employment in the agricultural sector declined in the fourth quarter of 2016 as cultivation had to be postponed because of farming areas damaged by floods.
Employment in the manufacturing and transport sectors also dipped, but the construction, wholesale and retail, hotels and restaurant sectors saw increases.
The overall unemployment rate in the fourth quarter last year was 0.97%, with a slight increase in the average working hours in the private sector from 47.1 hours per week in the same quarter last year to 48.9 hours per week, which the planning unit said is a sign of economic recovery. The labour force totalled 37.9 million in the fourth quarter.
For the whole year, the unemployment rate was slightly higher than that of 2015, equivalent to 1% of the total labour force, while wages and salaries, excluding overtime pay and other benefits, increased by 1.8%. Labour productivity rose by 4.1%. The labour force totalled 38.3 million for the whole year, slightly lower than 38.5 million in 2015.
The NESDB projected employment conditions will improve this year boosted by a growing Thai economy and exports, as well as higher crop prices.
However, the agency warned that drought conditions may put a crimp on the country’s employment in agriculture this year, urging the government to closely monitor the sector and come up with assistance measures. The NESDB also reported a rise in the unemployment rate in January, with unemployed workers equivalent to 1.2% of the total workforce, mainly for new graduates.
“Nonetheless, we hope higher exports and increasing private investment as well as an improving agriculture sector will help absorb new graduates this year,” the NESDB said.
In a related development, human resources, notably in banking and retail, are likely to take a hit from the proliferation of machines and technology under the government’s Thailand 4.0 initiative, the state planning unit warned. Porametee Vimolsiri, secretary-general of the NESDB, said yesterday Thai entrepreneurs in various sectors have been revving up use of state-of-the-art machinery and technology to replace human resources and boost efficiency.
“Siam Commercial Bank, for instance, has already announced a reduction in the number of branches by 40% over the next three to five years, while some giant retailers have announced the use of more technology and machines in their selling, warehouse and payment process,” Mr Porametee said. “These prospects will definitely change the landscape of domestic demand, both for qualifications and compensation.” The NESDB has yet to conduct a study on the impact of technology and machines on the country’s employment conditions.
Source: http://www.bangkokpost.com/business/news/1210065/productivity-grows-but-unemployment-reaches-1-