8.4 Million Workers Are at Risk of Losing Job as a Covid-19 Pandemic Aftermath

NESDC said about 8.4 million of Thai workers are at risk of termination, expecting an unemployment rate to rise 3-4%, closely to 1997 financial crisis level.

 

The Office of the National Economic and Social Development Council (NESDC) reported a decline of 0.7% year-on-year in employment during Q1/2020. Employment in agricultural sector decreased by 3.7%, mainly affected by severe and continued drought since the mid-2019. While in non-agricultural sector continued to expand slightly by 0.5% as the expansion of hotels and restaurants sector, and education sector. 

 

The significant fallout of Covid-19 pandemic on tourism-related employment has yet to appear as during January – March, the virus spreading was limited in some areas, and entrepreneurs were still monitoring the impact. 

 

However, existing a signal of coronavirus effect on average working hour of private sector employees. Many businesses were requested to temporarily stop their operation and there were workers who had to stop working but still receive a salary. 

 

NESDC found that Covid-19 could threaten 8.4 million workers to experience a job loss, including 2.5 million people (excluding retail and wholesale trading sector) in tourism industry due to the reduction of foreign tourists and domestic tourism, 1.5 million labors in the industrial sector, and 4.4 million out of 10.3 million people in services other than tourism after government has ordered the closure of places such as schools, markets, sports stadiums or shopping malls. 

 

“It is expected that the impact of the Covid-19 outbreak and the drought on unemployment will be apparent in the second quarter and more clearly in the second half of the year.” report said. 

 

Otherwise, NESCD forecast that the number of jobless will not surpass 2 million as the epidemic situation seem be in controlled and the government began to ease the control measures since mid-May, allowing some economic activities to be resume. The government also released a plan to support and recover economy.