Thailand: Labouring to fill spots

• Apr 29, 2019

The Eastern Economic Corridor (EEC) is the government’s flagship scheme aimed at creating jobs in three strategic provinces of eastern Thailand: Chachoengsao, Chon Buri and Rayong. 
The scheme is the continuation of the Eastern Seaboard Development initiated in 1982. The three provinces have been promoted as industrial zones for almost four decades. 
Many multinational companies have long experience with the resilience and camaraderie of Thai workers in these locations after establishing a business presence in the eastern region. 
Massive industrial manpower is gathering in the provinces, especially Chon Buri and Rayong, which boast some of the nation’s highest household income. 
The corridor is set to accommodate a high-skilled labour market because the government is promoting 12 targeted industries driven by advanced technology and innovation. 

Digital talent needed 

Suchat Pornchaiwiseskul, inspector-general of the Labour Ministry, said companies in the EEC are demanding high-skilled workers because employees have to understand and control robotics and automation systems at manufacturing facilities. 
“The ministry conducted the latest survey of companies in three provinces and found that the current labour market may not be responding to their requirements or labourers’ skills are mismatched,” Mr Suchat said. 
He said many industrial trends have changed and evolved, so the Thai workforce must improve its competitiveness in line with the global market. 
Mr Suchat, also chief executive of the EEC Labour Administration Center, said related state agencies are designing new educational curricula to match the private sector’s demands. 
The 12 targeted industries will stimulate the local workforce and stir demand for valuable manpower, so various agencies are collaborating with educational institutes and academies. 
Under the government’s S-curve policy, the 12 targeted industries are cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; defence; and education development. 
According to the EEC Office, the actual demand for labourers will reach 475,000 people in the next five years (2019-23). 
Of those, vocational level is needed for 250,000 jobs, followed by bachelor level for 210,000 jobs and post-graduate level for 10,000 jobs. 
The sectors in urgent need of high-skilled labourers include digital, aviation/logistics and intelligent electronics. 
“They are needing more experts in digital skills because they can be allocated in every targeted industry, as many companies are also adopting digital technologies,” Mr Suchat said. “The number of digital labourers needed for the EEC scheme totals 116,000 jobs.” 

Prolonged labour shortage 

The country is undergoing a labour shortage and faces technological and digital disruption, with most labourers not matching companies’ needs. 
Suchart Chantaranakaracha, vice-chairman of the Federation of Thai Industries, said Thailand is facing its greatest shortage of skilled labourers, so all stakeholders — state agencies, educational institutions and companies — must cooperate to improve the local workforce in line with market demand. 
“It seems the policy is running with massive demand but limited supply,” Mr Suchart said. 
He said companies have to invest heavily in robotics and automation in a bid to avoid suffering labour shortages, but the market still needs human workers to handle such systems. 
The Labour Ministry’s Mr Suchat said the workforce is an important factor not only in production and operations, but also in other economic activities. 
Another vexing issue is the government’s plan to transform from Industry 2.0 to 4.0 by adopting technology and innovation in operations and management nationwide, so the labour market has to deal with this as well. 

Manpower centre 

The EEC Office set up the EEC Labour Administration Centre last year in Chon Buri to support companies and employees. 
“This centre is a one-stop service to provide information and recruitment of labourers and offer support with many services, such as work permits, visas and training programmes,” Mr Suchat said. 
In 2018, the centre supported 37,296 companies and 1.54 million workers with services. 
“We have found that roughly 840,000 workers are the unskilled group, while around 500,000 are semi-skilled ones,” Mr Suchat said. “200,000 workers are the skilled group, indicating that they are still further along than the government’s projection in 2023.” 
As of October 2018, 15,638 workers were needed by companies inquiring at the centre. The number will increase every year, but the details will depend on investment expansion in the country. 
Mr Suchat said the centre plans to launch training programmes for 7,580 workers in 2018. It has coached 5,600 workers so far. 
The centre forecasts that more than 2.4 million workers will circulate in the corridor once the EEC is fully implemented. 

Seeking specialists 

Wanchai Priboonbaramee, senior business operations director at Manpower Group Thailand, said Thailand’s labour market is transforming to meet demand for a high- skilled workforce, thanks to the S-curve and Thailand 4.0 initiatives. 
“Today, the industrial sector has been restructured in many aspects; for example, many companies are changing from a labour-intensive operation to the adoption of robotics and automation,” Mr Wanchai said. “As a result, the Thai labour structure is changing and needing high-talented workers.” 
Manpower Group expects the high-skilled labour force to swell in support of the 12 targeted industries and to work efficiently with robotics and automation systems. 
Multi-language skills are needed as well, Mr Wanchai said. 
The US recruitment firm foresees the need for many specialists in the EEC, particularly those in engineering fields: metallurgical, industrial, telecommunications, electronics, environmental and aerospace. 
Moreover, scientists are in demand in fields like biology, chemistry and petrochemicals, while the healthcare sector is expanding in the corridor from new facilities, necessitating an adequate supply of doctors, nurses and physical therapists. 
Other specialists like lawyers are always in demand for the EEC to draw up terms for investment, labour and operations. 
Semi-skilled labourers are aimed at supporting manufacturing facilities and include mechanics, electricians and maintenance crews, Mr Wanchai said. 
Under the government’s long-term plans, the EEC is a strategic special economic zone of Southeast Asia with the goal of attracting massive investment flows from around the globe. 
The country’s industrial sector is managing the shift to the 4.0 era by implementing the S-curve policy. 
The government has high expectation that the Thai people will overcome the middle-income trap during the next 20 years. 

Source: https://www.bangkokpost.com/business/news/1668952/labouring-to-fill-spots