Positive factors to hike Thai wages

[webfact]

Positive factors to hike Thai wages
The Nation

BANGKOK: -- Salaries in Thailand are expected to rise by 5.8 per cent this year, outstripping the estimated inflation rate of 3.2 per cent, because of the tight labour market, with unemployment at 1 per cent, the lowest in the region, according to Towers Watson, a global professional-services company.

"Although this figure has gone up slightly from 0.8 per cent last year, it is clear that our country is facing strong pressure in the job market," Pichpajee Saichuae, managing director of Towers Watson (Thailand), said yesterday.

"On one hand, low unemployment is a positive sign of economic activity, reflecting high demand for goods and services. On the other hand, it also shows a lack of human resources that can have negative effects in the long term," she said. "Thailand has long suffered from a lack of quality talent and still faces issues over its workforce's language skills. Thus Thai employees will face competition from capable candidates from across the region - including India and the Philippines."

Covering all groups

The company's annual survey on salary movement, conducted among companies from 18 countries across the Asia-Pacific region, covered all employee groups, ranging from executive directors to middle management, down to technical operations and production.

It found that the salary increases will basically be rolled out in the same percentage, regardless of activities. However, financial services are poised to experience a slightly higher overall increase of 6.5 per cent.

"Such detailed statistics on salary movements, compared with key economic indicators, can help companies plan their compensation budgets ahead," Pichpajee said.

According to the Towers Watson report, salaries in other countries within the region are also on the way up.

The biggest projected salary increases are expected in Bangladesh (12.05 per cent), Vietnam (12 per cent), India (11.2 per cent), Indonesia (9 per cent), China (8.75 per cent) and the Philippines (7 per cent).

On the other end of the spectrum, with the lowest raises expected, are Japan at 2 per cent and Brunei at 1 per cent. Thailand's salary increase is comparable with Malaysia (5.5 per cent), South Korea (5.35 per cent) and Singapore (4.5 per cent).

-- The Nation 2013-06-14

[jackr]

Thailand's salary increase is comparable with Malaysia (5.5 per cent), South Korea (5.35 per cent) and Singapore (4.5 per cent).

But they do it organically, you've just had a mammoth increase and shouldn't really be comparing with such countries. That there is such low unemployment is more a case of lack of skills, too many foot-shufflers doing one job.

[rubl]

I guess the wage hike foreseen excludes those on minimum wage THB 300 / day or THB 15,000 / month ?

[foxteen]

As long the cost of living doesn't increase

[frankold]

Its a 2.6% increase over inflation so I guess that's the raise in real terms.

[chainarong]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

[Katipo]

Thailand's salary increase is comparable with Malaysia (5.5 per cent), South Korea (5.35 per cent) and Singapore (4.5 per cent).

But they do it organically, you've just had a mammoth increase and shouldn't really be comparing with such countries. That there is such low unemployment is more a case of lack of skills, too many foot-shufflers doing one job.

Most people don't register for unemployment in Thailand as well. There is no benefit in doing so for most.

It's more likely they will go home to work on the farm or take 'time off' until they find a new job. The 1% figure is basically meaningless.

[Thai at Heart]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

They have some methodology, but I would agree it doesn't reflect the reality of what we see every day does it?

[iancnx]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

They have some methodology, but I would agree it doesn't reflect the reality of what we see every day does it?

Agree also, I would say excluding growing rice and veg solely for the family's own consumption I would confidently say 75% of the 400 in my village were unemployed. There is casual labour needs from time to time but not enough to satisfy the demand.

Further lets take the percentage increase. I understand the minimum wage was 250 per day and has been increased to 300 per day. That's an increase of 50. I am rubbish at math but that looks like a 20% increase to me. Such an increase would break the back of even the strongest economies. So...... Really not sure what else to say!

[MrJohnson]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

They have some methodology, but I would agree it doesn't reflect the reality of what we see every day does it?

Unemployment widely under-repaorted - a bit like the divorce rates! Many unemployed and under-employed. At higher level there is a squeeze to find people, engineers, techicians etc. If the proposed mobility under the ASEAN Economic Community comes to fruition many Thais may struggle to compete for these jobs against labour coming in fron other parts of ASEAN.

[Thai at Heart]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

They have some methodology, but I would agree it doesn't reflect the reality of what we see every day does it?

Unemployment widely under-repaorted - a bit like the divorce rates! Many unemployed and under-employed. At higher level there is a squeeze to find people, engineers, techicians etc. If the proposed mobility under the ASEAN Economic Community comes to fruition many Thais may struggle to compete for these jobs against labour coming in fron other parts of ASEAN.

But they have effectively tracked it back from higher percentages to the level it is now. I don't deny it is widely under-calculated, but I can't understand why they don't rejig the methodolgy to reflect reality.

[jonclark]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

They have some methodology, but I would agree it doesn't reflect the reality of what we see every day does it?

Unemployment widely under-repaorted - a bit like the divorce rates! Many unemployed and under-employed. At higher level there is a squeeze to find people, engineers, techicians etc. If the proposed mobility under the ASEAN Economic Community comes to fruition many Thais may struggle to compete for these jobs against labour coming in fron other parts of ASEAN.

But they have effectively tracked it back from higher percentages to the level it is now. I don't deny it is widely under-calculated, but I can't understand why they don't rejig the methodolgy to reflect reality.

A rice farmer is still a rice farmer even if the rice ain't growing

[kimamey]

Thailand's salary increase is comparable with Malaysia (5.5 per cent), South Korea (5.35 per cent) and Singapore (4.5 per cent).

But they do it organically, you've just had a mammoth increase and shouldn't really be comparing with such countries. That there is such low unemployment is more a case of lack of skills, too many foot-shufflers doing one job.

Most people don't register for unemployment in Thailand as well. There is no benefit in doing so for most.

It's more likely they will go home to work on the farm or take 'time off' until they find a new job. The 1% figure is basically meaningless.

I think that's a good point and one I've made myself on a few occasions. I think the unemployment rate is low although not as low as the figures suggest. The many Thais on low wages make low unemployment a possibility unlike in higher waged countries.

As someone else said the over staffing in some areas helps although this must be countered by lower wages I assume to make it profitable.

There seems to be an increase in real terms but it would be interesting to see how this is distributed amongst the workforce.

I often wonder what effect the number of working age monks has on the numbers.

[winstonc]

thats 1% who are registered unemployed,,i see plenty sitting around doing not a lot they cant all work the nite shift,,,and lets be honest do you think thai companies would give the real figure out,im not so sure,,,

[fstarbkk]

I'm sure the 1% does not reflect the true rate of unemployed among the working-aged population.

On the other hand, if you're looking for people with the most elementary slills in any field of business or industry, the available pool is probably much less than one percent. Finding halfway competent people is like washing gold these days.

[hellodolly]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

Well I could be wrong but I am of the opinion that 1% not working is awdul low considering that they quite often use two and three to do a one man job.

Also it would be interesting if there was some kind of statistics as to what percentage of the population dosen't want to work.

I always think of 7/11s back home three times the size as Thailand and only one worker,

[Bagwan]

A one per-cent unemployment rate would be the envy of most countries, the question asked , how many work in those little family shops . how many are not registered, there's so much varation in the work force of Thailand and as usual, these figures cannot be believed ,one per-cent seems a little unreal.

Precisely. How do they know? How is unemployment registered? Methinks this is right up there with 'there is no prostitution in Pattaya'.

[Thai at Heart]

If they can pay 5% pay increases they must be quite profitable

[Nowisee]

What foolishness.

... because of the tight labour market, with unemployment at 1 per cent, the lowest in the region...

[Thai at Heart]

I fail to see that having to pay above inflation pay rises because there is a skilled labour shortage as a positive.