Expect more job loses as exports contract, tourism slows: NESDC

By Wichit Chaitrong
The Nation

 

NESDC secretary-general Thosaporn Sirisumphand

 

Unemployment is set to rise amid a contraction in exports and a tourism slowdown, warned the National Economic and Social Development Council (NESDC) on Monday.

 

The state think tank said that despite the unemployment rate remaining low and incomes increasing, the labour market must be closely monitored due to a slowing economy.

 

There were 37.8 million people employed in the second quarter this year, a decline of 0.3 per cent from the same period last year, according to the report, “Thailand’s Social Situation and Outlook in Q2/2019”, released on Monday.

 

Employment in the agricultural sector has decreased by 4.0 per cent caused by inclement weather and insufficient water for agriculture, while employment in non-agricultural sectors expanded by 1.5 per cent. The sectors that witnessed higher employment included transportation and storage, construction, education, and hotel and restaurant – an increase of 7.2, 6.2, 3.1, and 1.1 per cent, respectively, NESDC secretary-general Thosaporn Sirisumphand said.

 

The wholesale/retail and manufacturing sectors saw reduced employment of 0.4 and 0.5 per cent, respectively, which was consistent with the slowdown in exports. 

 

The unemployment rate was 0.98, a slight increased from 0.92 in the previous quarter, but it was lower than the rate of 1.07 per cent in the second quarter last year.

 

“Real wages in the private sector increased by 4.7 per cent, and saw an increase of 5.4 per cent in the agricultural industry, while salaries in the non-agricultural sector increased by 3.7 per cent. Overall labour productivity increased by 2.6 per cent,” Thosaporn said.

 

Anusorn Tamajai, an economist at Rangsit University, said the low inflation rate contributed to the rise in incomes. “We may need to review the method for calculating inflation so that it accurately reflects economic conditions, as people are complaining about the rising costs of living,” he suggested.

 

The state think tank is worried about the labour market outlook. 

 

The exported products that witnessed a significant contraction in the first half of the year included rice, rubber, cassava, and sugar, rubber products, computer equipment parts, integrated circuits, passenger car parts, machinery equipment, chemicals, and petroleum products. This contraction was expected to affect approximately 5.1 million people in total. At the same time, the number of tourists was likely to decrease, which could affect the service sector and related industries. 

 

However, the Cabinet has already approved measures to alleviate the effects of the economic slowdown. One of them is to support new business models that are growing rapidly, for instance express delivery services such as Lineman, Grab, Foodpanda, Get, and Skootar, which are part of the transportation/storage sector. Employment in this sector has gradually increased, especially this quarter, by 7.2 per cent and is likely to continue growing in line with e-commerce business growth. 

 

Government agencies need to review regulations to cover employment in this job scenario with new working patterns so that employees of businesses on online platforms are protected the same as those in other sectors, the NESDC said. 

 

Moreover, this should be linked with consumer protection for customers who use online platform services so that they receive standardised service and are not deceived, the council added.

 

Source: https://www.nationthailand.com/business/30375724

 

-- © Copyright The Nation Thailand 2019-09-02

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The permanently unemployed swinging in their hammocks around our way won't be concerned; they will just order the hard working Mrs to provide more Beer !

10 minutes ago, snoop1130 said:

Unemployment is set to rise amid a contraction in exports and a tourism slowdown, warned the National Economic and Social Development Council (NESDC) on Monday.

I wish they would make their minds up - only yesterday Thailand was apparently growing at 3% and tourism was up. I'll wait for tomorrows renegotiated figures

6 minutes ago, RichardColeman said:

I wish they would make their minds up - only yesterday Thailand was apparently growing at 3% and tourism was up. I'll wait for tomorrows renegotiated figures

Typical left hand right hand syndrome -

best to just scan these reports / claims for the gist and a bit of a chuckle -  and then dismiss it and move on to the next comedy article. 

between brexit and the antics of trump I expect a global slowdown which will affect every economy in the world and it certainly will slow down people spending money for pleasure..

28 minutes ago, snoop1130 said:

At the same time, the number of tourists was likely to decrease

Has he told the Tourism Minister this? Or the TAT?

Do they really care? I dont think so

But...but...that can't be! According to TAT 10 Gazillion tourist a day are clogging the airports!!!!

29 minutes ago, from the home of CC said:

between brexit and the antics of trump I expect a global slowdown which will affect every economy in the world and it certainly will slow down people spending money for pleasure..

Just can't help it. What utter stupidity. Its all to do with the baht, road butchery, tourist deaths, scams with infrastructure failing, military situation the exit of a very high % of expats along with the past few years of foreign invertment leaving. OMG

40 minutes ago, from the home of CC said:

between brexit and the antics of trump I expect a global slowdown which will affect every economy in the world and it certainly will slow down people spending money for pleasure..

There is one pleasure that won't see a down-turn in spending..... maybe even an increase. 

The brilliance of the Thai think tank never ceases to amaze........Amazing Thailand

2 hours ago, snoop1130 said:

“We may need to review the method for calculating inflation so that it accurately reflects economic conditions, as people are complaining about the rising costs of living,” he suggested.

Ok... so is the inflation figures correct or not? Everything in Thailand changes daily, from export figures, tourism numbers and now inflation calculations look odd as well. Thailand has had a low inflation rate but look at the prices of processed foods in Thailand and it has clearly gone up more than what they say it did. 

6 hours ago, snoop1130 said:

There were 37.8 million people employed

 

The unemployment rate was 0.98

A country of 70 million with 37.8 million employed has 0.98% unemployment rate how?

 

Bloomberg research recently showed Thailand is ageing fast since they don't have enough children. So the below average children and elderly living on 700 THB pension are half of the country?

Still incapable of providing factual stats. Next will be another story of economic recovery next quarter. Tourist figures up, up, up. 

9 hours ago, from the home of CC said:

between brexit and the antics of trump I expect a global slowdown which will affect every economy in the world and it certainly will slow down people spending money for pleasure..

Nowt to do with Brexit, friend. This is a homegrown thing. To apportion blame, look to the army. They are (purposely) killing the goose...

Hopefully we can lose some of those jet ski touters, and speed boats..

12 hours ago, snoop1130 said:

Expect more job loses as exports contract, tourism slows

I wonder how that high powered economics job is going that the PM appointed himself to? He'll need to extract himself from that position pretty quickly if the economy continues to go down the gurgler.

The opposition parties will make mincemeat of him.

3 minutes ago, Cadbury said:

I wonder how that high powered economics job is going that the PM appointed himself to? He'll need to extract himself from that position pretty quickly if the economy continues to go down the gurgler.

The opposition parties will make mincemeat of him.

I believe he ordered all provincial Governor's to act on this as a priority, or maybe that was the drought or the school lunches or the road toll. Don't worry he's onto it.

3 minutes ago, Oziex1 said:

I believe he ordered all provincial Governor's to act on this as a priority, or maybe that was the drought or the school lunches or the road toll. Don't worry he's onto it.

I see he has delegated his ministerial responsibilities for twerking, lewd behaviour and short skirts to the Education Minister. Must be to make more time available for his unfinished symphonies like the lottery tickets and the pavements.

12 hours ago, from the home of CC said:

between brexit and the antics of trump I expect a global slowdown which will affect every economy in the world and it certainly will slow down people spending money for pleasure..

and still the Baht rises just about every day

With all this bad and downward news the generals may have to bring some money back until the trillion tourist arrive by Christmas????

Expect a rise in petty crime rate as people find themselves running out of money...!!!

Well, if Bank of Thailand allows more Chinese hot money inflows from bond sales--Baht will keep rising, jobs will keep disappearing, and tourism will die along with exports.  Time to wake up, Bank of Thailand.  Your hot money inflow addiction is killing Thailand.

I do not understand, ministers continue to say that there is no reason to be alarmed, tourism grows and export continues to increase, production is also growing.
What is true!
The rich are getting richer and the poor are getting poorer.

39 minutes ago, Isaan sailor said:

Well, if Bank of Thailand allows more Chinese hot money inflows from bond sales--Baht will keep rising, jobs will keep disappearing, and tourism will die along with exports.  Time to wake up, Bank of Thailand.  Your hot money inflow addiction is killing Thailand.

It's killing me !

1 hour ago, Geoffggi said:

Expect a rise in petty crime rate as people find themselves running out of money...!!!

I'm buying a new crowbar today

Well then you get .98% of a cookie, as soon as Thailand gets to 0% unemployment?   You get the whole dang thing..  

I think next quarter we can expect some great thing from this think tank...  and a cookie in every hand.????

Edited September 3, 20196 yr by garyk

I was at a government hospital and then a tessaban yesterday and the inefficiency was staggering.

A few people working relentlessly whilst the rest loafed around doing literally nothing.

I can't imagine there was much of a difference in pay either.

If Thailand was run efficiently the unemployment rate would be 90%

14 hours ago, snoop1130 said:

The unemployment rate was 0.98,

Where does this figure come from?
Of a conjurer's hat?
Every day I see thousands of Thais who are living a little job, selling national lottery tickets or a drink in a makeshift stall on the edge of the street;
I see thousands of men dozing in a hammock;
I see thousands of guys dressed in orange ...
and also fifty or a hundred workers there or in Europe we would use ten ...
When we walk in the malls or shopping centers are almost deserted but filled with employees who have nothing to do but spend their lives on their smartphone ...
And they have the nerve to say that only 1% of the population is inactive?

14 hours ago, from the home of CC said:

between brexit and the antics of trump I expect a global slowdown which will affect every economy in the world and it certainly will slow down people spending money for pleasure..

Money for pleasure? Have bar-fines gone up?