Thailand Faces Economic Strain: Mass Layoffs in Key Industries

[snoop1130]

 

In a troubling turn for Thailand's economy, mass layoffs have hit the industrial sector hard, with approximately 2,600 workers losing their jobs in just two days. The financial pressures have compelled companies to shrink operations, resulting in widespread disruption for employees.

 

In Chachoengsao, an electric vehicle manufacturer announced the layoff of 600 workers, effective December 1st. The company cited a dip in orders and rising costs as reasons for the decision, vowing to meet legal compensation obligations. The announcement, shared by the Noom-sao Rongngan Facebook page, underscores how the current economic climate has driven such tough choices.

 

Meanwhile, a jewellery factory in Samut Prakan has also revealed plans to cut 2,000 jobs by the start of next year, reflecting broader issues within Thailand's manufacturing sector. Reports on this trend highlight an economic recovery in limbo, as evidenced by a rise in managerial and executive job seekers amid lukewarm industrial demand in early 2024.

 

Further compounding the concern, the Federation of Thai Industries reported over 360 factory closures in the year's first half, displacing more than 10,000 workers and revealing a threatening economic landscape.

 

As Thailand seeks solutions to its industrial challenges, stabilising the economy and protecting jobs remain priorities. The severity of the current situation calls for immediate and strategic action, ensuring the livelihoods of countless citizens are safeguarded moving forward.

 

File photo for reference only

 

-- 2024-11-01

 

 

[Tropicalevo]

Sadly, this happens when the dinosaurs in charge refuse to leave the trough.

More mega projects awarded to the politician's sponsors.

No money in the tin so they take the money from the projects that invest in the people.

Then borrow more.

Many, many businesses are struggling because ordinary folk have no spare cash to spend.

As for the 10k for the favoured few - peanuts at an all you can eat buffet.

[CallumWK]

20 minutes ago, Tropicalevo said:

Many, many businesses are struggling because ordinary folk have no spare cash to spend.

 

I only have to look at the car parking at big c extra to know which part of the month we are

[spidermike007]

The economy here has been in trouble for years. 9 years of Jurassic rule by Prayuth was devastating. And the effects are still being felt. Foreign investment is declining for a dozen good reasons. Foreign companies cannot count on the revolving door administrations. Manufacturing, exports, real estate, and other industries are down, and the goons in PT don't have a clue. In addition, China continues to unfairly sponsor industries for exports, and this creates great hardship for many local industries, like the Thai steel industry, which has taken a huge hit. With China it is a one way street. Ever tried to sell an item and send it to China? Nearly impossible. All imports are govt. controlled. It is all about exporting anything and everything they can and very selective importing. A highly controlled market with thousands of companies getting govt. subsidies. They don't believe in a level playing field, nor playing fair. 

 

Lastly, the tourism sector has been declining in quality. The arrival numbers might be decent, but they are not spending like in the past. The economic troubles here are only going to continue. 

Edited 1 hour ago by spidermike007

[hotchilli]

10 hours ago, snoop1130 said:

In a troubling turn for Thailand's economy, mass layoffs have hit the industrial sector hard, with approximately 2,600 workers losing their jobs in just two days. The financial pressures have compelled companies to shrink operations, resulting in widespread disruption for employees.

Thaksin has a master plan I'm sure.

[hotchilli]

26 minutes ago, spidermike007 said:

The economy here has been in trouble for years. 9 years of Jurassic rule by Prayuth was devastating. And the effects are still being felt. Foreign investment is declining for a dozen good reasons. Foreign companies cannot count on the revolving door administrations. Manufacturing, exports, real estate, and other industries are down, and the goons in PT don't have a clue. In addition, China continues to unfairly sponsor industries for exports, and this creates great hardship for many local industries, like the Thai steel industry, which has taken a huge hit. With China it is a one way street. Ever tried to sell an item and send it to China? Nearly impossible. All imports are govt. controlled. It is all about exporting anything and everything they can and very selective importing. A highly controlled market with thousands of companies getting govt. subsidies. They don't believe in a level playing field, nor playing fair. 

 

Lastly, the tourism sector has been declining in quality. The arrival numbers might be decent, but they are not spending like in the past. The economic troubles here are only going to continue. 

MFP was the answer... but they got dissolved.. 

[Henryford]

Never seems to affect the Baht though.

[soalbundy]

7 hours ago, Tropicalevo said:

Sadly, this happens when the dinosaurs in charge refuse to leave the trough.

More mega projects awarded to the politician's sponsors.

No money in the tin so they take the money from the projects that invest in the people.

Then borrow more.

Many, many businesses are struggling because ordinary folk have no spare cash to spend.

As for the 10k for the favoured few - peanuts at an all you can eat buffet.

The recession is world wide, from Alaska to Sydney and everything in between, the 'robust economy' in the US has been shown to be false while China and Europe are in deep trouble, why do you think Thailand would be spared?

[Presnock]

1 hour ago, spidermike007 said:

The economy here has been in trouble for years. 9 years of Jurassic rule by Prayuth was devastating. And the effects are still being felt. Foreign investment is declining for a dozen good reasons. Foreign companies cannot count on the revolving door administrations. Manufacturing, exports, real estate, and other industries are down, and the goons in PT don't have a clue. In addition, China continues to unfairly sponsor industries for exports, and this creates great hardship for many local industries, like the Thai steel industry, which has taken a huge hit. With China it is a one way street. Ever tried to sell an item and send it to China? Nearly impossible. All imports are govt. controlled. It is all about exporting anything and everything they can and very selective importing. A highly controlled market with thousands of companies getting govt. subsidies. They don't believe in a level playing field, nor playing fair. 

 

Lastly, the tourism sector has been declining in quality. The arrival numbers might be decent, but they are not spending like in the past. The economic troubles here are only going to continue. 

Yeah, we have seen the Chinese version of "free trade" for a long time, noting how it is almost always a one way street, from Chinese factories to the rest of the world.  Yet, immediately, Thai leaders continue to strive to become members of BRICS, thinking that it just opens up the markets of the other countries.  If anyone here thinks that Russia, China, India, Saudi, etc will open their markets fully to Thailand - dream on.  Those countries are only looking for more votes against the traditional Western countries.  I will admit that many of the western countries have done their fair share of taking from the poorer countries  for a long time.  But, I still believe that the western countries treat weaker countries a lot better than many of the BRICS leaders.  IMHO having read much about all these issues for over 70 years.

[Suua]

55 minutes ago, Henryford said:

Never seems to affect the Baht though.

Have a read of 'Chartchai Parasuks' latest article in the BKK post

[mfd101]

11 hours ago, snoop1130 said:

The severity of the current situation calls for immediate and strategic action,

In this country, immediate action (usually for show only) is one thing. Strategic action is an unknown concept.

[sammieuk1]

1 hour ago, Henryford said:

Never seems to affect the Baht though.

Yep' never including coups, election results overturned, industrial scale corruption,and cronyism to name but a few  🤔