Severe Labour Shortage Looms: Thailand

[webfact]

Severe labour shortage looms

Suriyan Panyawai

The Nation

BANGKOK: -- In the next 10 years, four industries in Thailand will have some 300,000 vacancies for unskilled labour, the private sector said yesterday as it proposed that the retirement age of workers be extended from 55 to 60 years old.

Poonsak Wuthikul, vice president of the Thai Auto-parts Producers Association, said workers in the automobile industry were getting older, while the younger generation tended to spend more time studying rather than entering the workforce. Also, the retirement regulation forces people out of the industry too early at the age of 55, he said.

By 2030, up to 25 per cent of the Thai population will be aged 60 or more, Poonsak said.

Hence, he added, the government should change its regulation and allow older workers, who are still capable, to continue working. He also said that factories should be offered tax incentives for hiring senior workers.

Wanna Dulyasithiporn, from the Human Capacity Building Institute, said many industries will be lacking in workers in the next decade or so. For instance, producers of auto parts will need at least 185,000 new workers in the next decade, the electronics industry will need some 100,000, electrical appliances and the integrated-circuit industry will want 60,000, while the metal industry will have 54,000 vacancies.

"Though they are considered unskilled labour, their experience helps them produce good quality work. They are better than the younger generation who will replace them when they retire early," she said.

Thai society is ageing fast, but the younger generation is still have lower level of skills despite higher education level, said Kulthida Lertphongwattana, from the National Economic and Social Development Board.

In comparison to other countries, the education system in Thailand is below standard, she said, adding that human resources failed to meet market demands in terms of quantity and quality, she said.

Thailand needs to boost the quality of its population in all aspects as well as offer better social benefits for its ageing population, she said.

-- The Nation 2012-12-19

[Thai at Heart]

while the younger generation tended to spend more time studying rather than entering the workforce.

That is a new interpretation on this one.

[OzMick]

While the economy moves from agrarian to industrial, the current government wastes huge amounts of resources subsidising uneconomic labour-intensive industry.

They need to realise the way to boost the wealth of the Thai people is not raising the minimum wage, it is educating them and encouraging them to move into better paying jobs, raising the AVERAGE wage.

[USNret]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

[jerrysteve]

THAILAND has never sought to update and upgrade its unskilled labor to skilled labor pursuant to the skilled trades all the trades and craftmen/craftpeople.

And the wages have remained the same, which is the other important main attraction.

Historically that has been their history.

Because of that., Thailand has to keep starting over and over again...Their short cut polices have been disasters and have kept them and will forever keep them behind the Curve of the rest of the world.

They just keep pissing in the wind.

[kurnell]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

Bingo. I'd rather have one sales clerk/waitress serving me than 4 dolts banging their heads together cos they are untrained or too bone idle to help.

[monty]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

Very typical in the service/retail industry, but much less so in manufacturing! It's a cultural Thai thing and reducing this would keep the Thai customers away, they only tend to go where they get a virtually "private" waiter/waitress.

55 year old forced retirement age seems too early to me!

[chiangmaikelly]

THAILAND has never sought to update and upgrade its unskilled labor to skilled labor pursuant to the skilled trades all the trades and craftmen/craftpeople.

And the wages have remained the same, which is the other important main attraction.

Historically that has been their history.

Because of that., Thailand has to keep starting over and over again...Their short cut polices have been disasters and have kept them and will forever keep them behind the Curve of the rest of the world.

They just keep pissing in the wind.

The West 10% unemployment and Thailand major labor shortage. SET up 34% this year. Ya disaster

[chiangmaikelly]

While the economy moves from agrarian to industrial, the current government wastes huge amounts of resources subsidising uneconomic labour-intensive industry.

They need to realise the way to boost the wealth of the Thai people is not raising the minimum wage, it is educating them and encouraging them to move into better paying jobs, raising the AVERAGE wage.

Ya where is a dictator when you need em? Someone to at least make the trains run on time.

[fareastguy]

Quote: "Though they are considered unskilled labour, their experience helps them produce good quality work. They are better than the younger generation who will replace them when they retire early," she said.

So in other words they are actually "skilled" workers but labelled unskilled so as to keep the wages paid at the lowest level.

This wage level has then had the effect of driving new employees away to find equal or better pay in less demanding job's.

If the industrial worker was paid his/her worth then others might actually think it's worth training for & follow in their footsteps.

[moe666]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

Does it matter these little issues that some here complain about tirelessly is the reason many of us stay in this country. If you want efficent, rude, and self absorbed waiters get on back home and let us know how thats going

[moe666]

A couple of months ago chatting with a couple of ladies in a bar on Soi4 Bangkok, they had both been working in a factory and decided to find a higher paying job with party benefits. I asked them wwhich job do you like better, they say are you crazy working in the bar is much better than the factory, better benefits, better pay and a lot more fun.

[lemoncake]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

Does it matter these little issues that some here complain about tirelessly is the reason many of us stay in this country. If you want efficent, rude, and self absorbed waiters get on back home and let us know how thats going

You missed the point and clearly explaining would be a waste of time.

[chiangmaikelly]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

Does it matter these little issues that some here complain about tirelessly is the reason many of us stay in this country. If you want efficent, rude, and self absorbed waiters get on back home and let us know how thats going

You missed the point and clearly explaining would be a waste of time.

As was telling him that fact eh? Wouldn't it be nice is people tried to explain things instead of starting arguments? The only point I can get out of it is that all Thais are inefficient which is of course not true. Management is to blame 99% of the time when inefficiencies are observed. So why don't you try and explain it to the gentleman?

[ignis]

55 year old forced retirement age seems too early to me!

You think ? i have a number of Thai friends between 38 and and 55 that are working full time, men and women, would like to change there work place, some are highly skilled, it would appear that the magic age here is 35, if your over that forget it, just stay at the present work place, or do something on your own, eg: Market stall, shop. noodle seller

across the road from me the Husband works for himself as a printer book binder and helps his wife, the Wife stays at home, sorting clothes, filling soap /shampoo bottles, put toy in boxes, and a 101 other things that people bring in trucks/ pickups and collect the following week, both are in the early 40's, the wife speaks perfect English and good German is Thai so of course Thai.,

Just in this Village only 63 houses, only 4 people here work for Companies, all are over 35, most now work freelance or some own there own business.... most are under the radar as it were, some are getting bigger........ 3 houses up the man decided to sell fish, truck comes early with fresh fish, truck comes with ice, pickup goes out with packed on ice fish in those cooler boxes...... now a few years on, his wife goes out every day, his brother and there 19 year old son, they have 3 brand new pickups and an older one, so has built up to a big business all because he was over that 35 age and could not get another job is sales...

So unless something changes here 55 is way way over the top to find work.

[lemoncake]

It's not a workforce issue, it's a productivity issue. My wife & I were eating in a burger place near Siam Center; I counted no less than 11 employees in the dining room & kitchen. We were the only customers! There were enough employees there to run 3 restaurants. If Thai workers would learn to be productive, the labor shortage would vanish.

Oh, and by the way... service was still horrible in the restaurant. o_O

Does it matter these little issues that some here complain about tirelessly is the reason many of us stay in this country. If you want efficent, rude, and self absorbed waiters get on back home and let us know how thats going

You missed the point and clearly explaining would be a waste of time.

As was telling him that fact eh? Wouldn't it be nice is people tried to explain things instead of starting arguments? The only point I can get out of it is that all Thais are inefficient which is of course not true. Management is to blame 99% of the time when inefficiencies are observed. So why don't you try and explain it to the gentleman?

for the very same reason that you simply like to troll and make up imaginary life.

If you had any idea or experience with Thai labor, you would know that this has absolutely nothing to do with management, because putting aside that out of 11 staff today, there may only be 1 tomorrow as not showing up to work is a norm in Thailand, just as training is simply useless, because not only half of them do not show up to work but also because they do not listen or follow instructions.

Having manager train staff on daily basis takes him/her away from running a restaurant or any business.

This problem has nothing to do with management, not that managers are any better in their work attitude and habits.

No doubt then with your extensive experience, you will blame the owner, only the owner can not be and do everything at the same time,

I suggest you read the real life experiences in work place threads before arriving at your imaginary conclusions.

PS. If the gentleman needs an explanation, no doubt he is capable of asking for it, i do not recall seeing anyone nominating you to be the speaker for others

Edited December 19, 2012 by lemoncake

[Teerak2]

while the younger generation tended to spend more time studying rather than entering the workforce.

Oh sh**, so who's going to work in the sweatshops that keep the Walmarts stocked with dirt cheap products?

We may have a developing problem here.

Edited December 19, 2012 by Teerak2

[chiangmaikelly]

Does it matter these little issues that some here complain about tirelessly is the reason many of us stay in this country. If you want efficent, rude, and self absorbed waiters get on back home and let us know how thats going

You missed the point and clearly explaining would be a waste of time.

As was telling him that fact eh? Wouldn't it be nice is people tried to explain things instead of starting arguments? The only point I can get out of it is that all Thais are inefficient which is of course not true. Management is to blame 99% of the time when inefficiencies are observed. So why don't you try and explain it to the gentleman?

for the very same reason that you simply like to troll and make up imaginary life.

If you had any idea or experience with Thai labor, you would know that this has absolutely nothing to do with management, because putting aside that out of 11 staff today, there may only be 1 tomorrow as not showing up to work is a norm in Thailand, just as training is simply useless, because not only half of them do not show up to work but also because they do not listen or follow instructions.

Having manager train staff on daily basis takes him/her away from running a restaurant or any business.

This problem has nothing to do with management, not that managers are any better in their work attitude and habits.

No doubt then with your extensive experience, you will blame the owner, only the owner can not be and do everything at the same time,

I suggest you read the real life experiences in work place threads before arriving at your imaginary conclusions.

PS. If the gentleman needs an explanation, no doubt he is capable of asking for it, i do not recall seeing anyone nominating you to be the speaker for others

I ate lunch at Fuji yesterday. Thai manager. Thai cooks. Thai waitresses and hostesses and bus boys. Everybody in the place Thai. Great service. Very good food. Not a long wait. Nothing but good, good, good. That is reality, this is Thailand. I was the only Farang in the restaurant the rest were Thai people. I didn't have to insult or flame you to disagree with you. If there is a service problem in a hospitality business it is the fault of management. HRIM 101.

[lemoncake]

I ate lunch at Fuji yesterday. Thai manager. Thai cooks. Thai waitresses and hostesses and bus boys. Everybody in the place Thai. Great service. Very good food. Not a long wait. Nothing but good, good, good. That is reality, this is Thailand. I was the only Farang in the restaurant the rest were Thai people. I didn't have to insult or flame you to disagree with you. If there is a service problem in a hospitality business it is the fault of management. HRIM 101.

What does apples have to do with oranges? i mean really

The service received issue and triple the amount of people working issue are few light years away.Please stop trolling in every single thread

Just for the record, Fuji has just about as much staff as the customer sits. There is staff to welcome you, staff to sit you down, staff to take your order, staff to bring out your order, staff to clean your table, staff to write a bill and staff to collect the bill. Not to mention, the cook, the cook helper, the helper for the cook helper, and the helper to help the helpers. Last time i ate there, they had 6 people working in the kitchen

[bushwacker]

The younger generation may spend more time at school but I can assure you they are not studying!!!!

[LindsayBKK]

What the?

Population of 70mil and a labour shortage?

Could it be cause Thailand is kicking out the Burmese, Cambodians and Laos?

Could it be the 300 baht/day is discouraging employees to hire workers?

Could it be that young people would rather stay home and play with their Iphones to facebook?

Could it be Thai Parents spoil their kids turning them into rugrats?

Could it be all of the above?

Edited December 19, 2012 by LindsayBKK

[cheeryble]

By 2030, up to 25 per cent of the Thai population will be aged 60 or more, Poonsak said.

I'd like to know what % it is now.

Given 80% of health resources go to the oldest 20%, an ageing population would mean less physician availability...... And that of course would affect us including in terms of pricing

. If you want efficent, rude, and self absorbed waiters get on back home and let us know how thats going

Yeah try the country where waiters call diners "you guys".

Can you imagine?

Edited December 19, 2012 by cheeryble

[ignis]

Could it be cause Thailand is kicking out the Burmese, Cambodians and Laos?

would think is the correct answer....

​years ago in Germany, they sent and even paid for the Turkish folk to go home to Turkey, and then there was no one to pick up the rubbish drive rubbish trucks, sweep roads etc.

[chiangmaikelly]

I ate lunch at Fuji yesterday. Thai manager. Thai cooks. Thai waitresses and hostesses and bus boys. Everybody in the place Thai. Great service. Very good food. Not a long wait. Nothing but good, good, good. That is reality, this is Thailand. I was the only Farang in the restaurant the rest were Thai people. I didn't have to insult or flame you to disagree with you. If there is a service problem in a hospitality business it is the fault of management. HRIM 101.

What does apples have to do with oranges? i mean really

The service received issue and triple the amount of people working issue are few light years away.Please stop trolling in every single thread

Just for the record, Fuji has just about as much staff as the customer sits. There is staff to welcome you, staff to sit you down, staff to take your order, staff to bring out your order, staff to clean your table, staff to write a bill and staff to collect the bill. Not to mention, the cook, the cook helper, the helper for the cook helper, and the helper to help the helpers. Last time i ate there, they had 6 people working in the kitchen

I've never seen a Fuji with less than 20 (I go when it's busy) people in the kitchen. Fuji is a good example of an excellent company dealing with a labor shortage in Thailand. Fuji group does a good job and they make big bucks. Sure, there is a labor shortage in Thailand because the economy is booming. That's what happens when you have a good product. If you have a crappy product you have unemployment and recession.

Edited December 19, 2012 by chiangmaikelly

[lemoncake]

I ate lunch at Fuji yesterday. Thai manager. Thai cooks. Thai waitresses and hostesses and bus boys. Everybody in the place Thai. Great service. Very good food. Not a long wait. Nothing but good, good, good. That is reality, this is Thailand. I was the only Farang in the restaurant the rest were Thai people. I didn't have to insult or flame you to disagree with you. If there is a service problem in a hospitality business it is the fault of management. HRIM 101.

What does apples have to do with oranges? i mean really

The service received issue and triple the amount of people working issue are few light years away.Please stop trolling in every single thread

Just for the record, Fuji has just about as much staff as the customer sits. There is staff to welcome you, staff to sit you down, staff to take your order, staff to bring out your order, staff to clean your table, staff to write a bill and staff to collect the bill. Not to mention, the cook, the cook helper, the helper for the cook helper, and the helper to help the helpers. Last time i ate there, they had 6 people working in the kitchen

I've never seen a Fuji with less than 20 people in the kitchen. Fuji is a good example of an excellent company dealing with a labor shortage in Thailand. Fuji group does a good job and they make big bucks. Sure, there is a labor shortage in Thailand because the economy is booming. That's what happens when you have a good product. If you have a crappy product you have unemployment and recession.

what are you talking about now? what does that have to do with my post and thread itself?

Now there is no doubt in my mind that you have never had a business in your life nor have you ever managed one despite your dubious claims of owning a restaurant and running holiday inn and running hilton and running US army businesses and all the rest

20 people in the kitchen is NOT over staffed for a place that sits about 50?

[chiangmaikelly]

I ate lunch at Fuji yesterday. Thai manager. Thai cooks. Thai waitresses and hostesses and bus boys. Everybody in the place Thai. Great service. Very good food. Not a long wait. Nothing but good, good, good. That is reality, this is Thailand. I was the only Farang in the restaurant the rest were Thai people. I didn't have to insult or flame you to disagree with you. If there is a service problem in a hospitality business it is the fault of management. HRIM 101.

What does apples have to do with oranges? i mean really

The service received issue and triple the amount of people working issue are few light years away.Please stop trolling in every single thread

Just for the record, Fuji has just about as much staff as the customer sits. There is staff to welcome you, staff to sit you down, staff to take your order, staff to bring out your order, staff to clean your table, staff to write a bill and staff to collect the bill. Not to mention, the cook, the cook helper, the helper for the cook helper, and the helper to help the helpers. Last time i ate there, they had 6 people working in the kitchen

I've never seen a Fuji with less than 20 people in the kitchen. Fuji is a good example of an excellent company dealing with a labor shortage in Thailand. Fuji group does a good job and they make big bucks. Sure, there is a labor shortage in Thailand because the economy is booming. That's what happens when you have a good product. If you have a crappy product you have unemployment and recession.

what are you talking about now? what does that have to do with my post and thread itself?

Now there is no doubt in my mind that you have never had a business in your life nor have you ever managed one despite your dubious claims of owning a restaurant and running holiday inn and running hilton and running US army businesses and all the rest

20 people in the kitchen is NOT over staffed for a place that sits about 50?

The average Fuji seats about 200. Multiply the check average times the total customers a day and you would know if it is over staffed. I doubt they make many mistakes. I have never seen a slow Fuji.

Table average sales 850 baht and Fuji operates 70 restaurants in Thailand.

Edited December 19, 2012 by chiangmaikelly

[lemoncake]

The average Fuji seats about 200. Multiply the check average times the total customers a day and you would know if it is over staffed. I doubt they make many mistakes. I have never seen a slow Fuji.

Table average sales 850 baht and Fuji operates 70 restaurants in Thailand.

Really the average sits about 200? how many have you been to? what does total customers in a day have to do with being over staffed? what does making mistakes have to do with the thread? or my post or with over staffing?what does being busy or slow have to do with over staffing? what does average sales have to do with the thread? my post? and over staffing? what does the amount of restaurants in Thailand have to do with anything at all?

You not tired of trolling yet? i am tired of reading your posts? and have a feeling a few other people as well, you do not think its time to find a new hobby?

[chiangmaikelly]

The average Fuji seats about 200. Multiply the check average times the total customers a day and you would know if it is over staffed. I doubt they make many mistakes. I have never seen a slow Fuji.

Table average sales 850 baht and Fuji operates 70 restaurants in Thailand.

Really the average sits about 200? how many have you been to? what does total customers in a day have to do with being over staffed? what does making mistakes have to do with the thread? or my post or with over staffing?what does being busy or slow have to do with over staffing? what does average sales have to do with the thread? my post? and over staffing? what does the amount of restaurants in Thailand have to do with anything at all?

You not tired of trolling yet? i am tired of reading your posts? and have a feeling a few other people as well, you do not think its time to find a new hobby?

You wrote, “Just for the record, Fuji has just about as much staff as the customer sits. There is staff to welcome you, staff to sit you down, staff to take your order, staff to bring out your order, staff to clean your table, staff to write a bill and staff to collect the bill. Not to mention, the cook, the cook helper, the helper for the cook helper, and the helper to help the helpers. Last time i ate there, they had 6 people working in the kitchen.”

The above in not accurate. Thailand has a labor shortage because of the economic boom Thailand is experiencing.

There is a boom in industry as demonstrated by all-time records broken in auto production and in tourism demonstrated by arrivals at the airport.

Well managed business manage to prosper during a labor shortage as demonstrated by the existence of 70 successful Fuji restaurants in Thailand.

In order to determine correct staffing levels of a restaurant one must know the total sales and the total spent on labor.

The question becomes, as a severe labor shortage looms for Thailand, will service in well run businesses suffer? It would be my contention the answer is no as that is a function of good management. Although I do hear more and more Burmese being spoken in local restaurants and hotels.

[01322521959]

I ate lunch at Fuji yesterday. Thai manager. Thai cooks. Thai waitresses and hostesses and bus boys. Everybody in the place Thai. Great service. Very good food. Not a long wait. Nothing but good, good, good. That is reality, this is Thailand. I was the only Farang in the restaurant the rest were Thai people. I didn't have to insult or flame you to disagree with you. If there is a service problem in a hospitality business it is the fault of management. HRIM 101.

What does apples have to do with oranges? i mean really

The service received issue and triple the amount of people working issue are few light years away.Please stop trolling in every single thread

Just for the record, Fuji has just about as much staff as the customer sits. There is staff to welcome you, staff to sit you down, staff to take your order, staff to bring out your order, staff to clean your table, staff to write a bill and staff to collect the bill. Not to mention, the cook, the cook helper, the helper for the cook helper, and the helper to help the helpers. Last time i ate there, they had 6 people working in the kitchen

I've never seen a Fuji with less than 20 people in the kitchen. Fuji is a good example of an excellent company dealing with a labor shortage in Thailand. Fuji group does a good job and they make big bucks. Sure, there is a labor shortage in Thailand because the economy is booming. That's what happens when you have a good product. If you have a crappy product you have unemployment and recession.

what are you talking about now? what does that have to do with my post and thread itself?

Now there is no doubt in my mind that you have never had a business in your life nor have you ever managed one despite your dubious claims of owning a restaurant and running holiday inn and running hilton and running US army businesses and all the rest

20 people in the kitchen is NOT over staffed for a place that sits about 50?

Calm down lads.

[impulse]

Is there a shortage of laborers willing to work for prevailing wages? Probably

If the prevailing wages came up to a living wage, perhaps some of the millions would abandon their fruit carts, motosais and begging stands to take these jobs.

Or they can keep the wages low and import and exploit all the cheap SEA labor from other countries, guaranteeing the few will continue raking it in.