TDRI warns of serious layoffs problem in the second half of the year

[webfact]

TDRI warns of serious layoffs problem in the second half of the year



BANGKOK: -- A labour expert of a private think tank has warned that the problem of layoffs is likely to get worse in the second half of the year as local industries will start to feel the effects of global economic slowdown while the government’s labour expert has assured that the layoffs problem is normal.

Mr Yongyuth Chalaemwong, director of labour development of Thailand Development Research Institute, said that layoffs problem for the second half of the year is a matter of serious concern as local industries will start to feel the impacts from global economic slowdown which hurts consumption forcing the industries to cut back production.

He pointed out that labour intensive industries such as garment, electronic parts, automobile, leatherware and plastic will be most vulnerable.

He predicted that the problem of layoffs will become more serious and urged the government to take precautions to accommodate workers who are to be laid off such as to provide them with skill training so that they can work on jobs which require higher skills where there is a shortage of skilled labour.

However, Mr Thirapol Khunmuang, spokesman of the Labour Ministry, disclosed that unemployment rates for April-June period were 1 percent, 1.2 percent and 1 percent respectively.

This shows that the problem of layoffs is still normal and there are no signs that businesses are in trouble to the extent that they will resort to mass layoffs to save costs, he said.

Citing talks with Japanese investors last month, Mr Thirapol said he was assured by the investors that they would not move their production plants out of Thailand as Thai labourers are skilled and are acquainted with technology.

Source: http://englishnews.thaipbs.or.th/tdri-warns-serious-layoffs-problem-second-half-year/


-- Thai PBS 2016-07-08

[fruitman]

Well it seems that Thailand prefers more layoffs instead of devaluating the Thai Baht.

Thailand is too expensive...

[Brer Fox]

No mention of the exodus of foreign investors since the beginning of 2015. Between January and November 2015 Thailand's foreign investment fell by 78% compared to the previous year.

Manufacturers have learnt that higher productivity and cost of labour and greater security of their investment exists in neighbouring countries.

At least Mr Yongyuth Chalaemwong does fess up that labour intensive industries such as garment, electronic parts, automobile, leatherware and plastic will be most vulnerable but in a desperate bid to escape reality he blames a slowdown in global growth.

[trainman34014]

But;but....everyone is so happy !!

[tuanku]

Should be loads of jobs when they start putting those cables underground.

[elgordo38]

But;but....everyone is so happy !!

Yes the TAT sorry stats prove it. I find this article well humorous in a way. It starts off warning of layoffs yet government officials say it is normal. Is he talking the new normal or the old normal or normal according to government propaganda?? I am getting confused. Ah what the heck its all window dressing.

[elgordo38]

But;but....everyone is so happy !!

Yep 99.6% by last count give or take a 100. Love them government numbers 1 or 2% unemployment what about underemployment? My g/f keeps telling me that after 30 years of age your over the hill in a number of ways and getting a GOOD paying job is one of them. We all know what the other one is.

[Srikcir]

there are no signs that businesses are in trouble

They just cut employment to keep profitable. It's the laid off employees who will be in trouble!

The government contention that unemployment may rise to no more than 1.2% may be a comfort to jobs-for-life military and civil servants. But for laborers it is economic growth that is needed to sustain employment and wage levels. With Thailand experiencing the lowest GDP growth of the ASEAN, Thai workers will become more like its neighbor laborers to search for work outside of Thailand.

[metisdead]

Off topic political generalization posts and replies have been removed.

[rubl]

No mention of the exodus of foreign investors since the beginning of 2015. Between January and November 2015 Thailand's foreign investment fell by 78% compared to the previous year.

Manufacturers have learnt that higher productivity and cost of labour and greater security of their investment exists in neighbouring countries.

At least Mr Yongyuth Chalaemwong does fess up that labour intensive industries such as garment, electronic parts, automobile, leatherware and plastic will be most vulnerable but in a desperate bid to escape reality he blames a slowdown in global growth.

No mention of the 'first car ownership' program from the previous government as well. Still it did effect sales of automobiles for the last three years.

Seems the works of governments with popular policies are distorting the market, cost lots of money and have lasting effects. To blame all on the current government seems natural, but doesn't help much.