Employment outlook 2012 thailand

thailand

The shortage of skilled labor has long been an obstacle to Thailands competitiveness.
The domestic workforce is generally good quality and highly productive, but educational levels remain comparatively low: Secondary school completion rate has grown significantly in the past 15 years, but these gains have been outstripped by increased demand for skilled labour. Only 19% of Thai university graduates have a science and technology background and 64.6% of the manufacturing force has only an elementary education, with just 6.2% possessing a degree. Thailand has also faced a brain drain in recent years, with its skilled students and workers migrating in search of better opportunities and pay.

EMPLOYMENT
In spite of the devastation of last years flood, Thailands employment market is set to grow by 20% across almost all sectors and occupations in 2012. Occupations in demand include sales professionals, engineers and IT professionals accounting and finance professionals, HR, and marketing professionals. The top sectors with plans to hire include Trading, Industrial, IT, Services and Energy. As a result of the flood, more than 45,000 people lost their jobs, 700,000 people are temporarily unemployed, and another 164,552 jobs are at risk as 284 flood-hit firms have still not reopened. The hardest hit industries were manufacturers of Automobiles, Electronics and Food. The effects of the flooding on these industries is expected to last well into 2013. The tourism sector has also experienced a temporary slump, but is expected to recover in the coming months. Ultimately, reconstruction activity will support 2012 economic growth but much depends on how quickly the reconstruction actually begins.

Population

1.9%
2012: 69.9 M 2016: 71.2 M
unemployment

0.7%
2012: 0.9% 2016: 2.0%

Source: IHS Global Insight

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Labour Force projections in 000s

40,000

GOVERNMENT ACTION to address skill shortages:

Education: A mix of student loans and grant policies have been designed to increase overall access to higher education.

35,000

Immigration: The ASEAN Economic Community (AEC) will usher in a free labor market in 2015. To prepare for this change, the government is allowing free regional movement for eight professions, including engineers, medical professionals, and other skilled workers.

30,000

25,000

20,000 1980 1990 2000 2010 2020 2030

Source: Asia Development Bank

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key industries
Animation Thailands animation and gaming market has grown more than 66% since 2006. The Software Industry Promotion Agency (SIPA) predicts the market to be worth more than USD 1 billion by 2013. In addition, the Digital Media Asia project aims to make Thailand a regional hub of the digital content industry. The agency is opening a Digital Content Center that will serve as an incubator for the industry. Automotive In November 2005, Thailand reached its auto production goal and was dubbed the Detroit of Asia. Between 2005 and 2010, the industry experienced a 100% growth, and has for several decades been a priority sector. Today the automotive industry is the third largest industry in Thailand, employing a workforce of more than 300,000 employees. Biotechnology Thailands national biotechnology policy aims to increase the countrys competitiveness through investment of over USD 164 million (5 billion Baht) in biotech research and the development of more than 100 biotech companies. Thailand is currently the regions third-largest bioplastics producer, but the government is carrying out a 15-year plan for Thailand to become the regional leader by 2021. Electronics and ICT The sector employs upwards of 40,000 qualified software engineers. Enterprise software dominates the sector, accounting for >86% of total value in 2010. That same year, mobile application software and embedded software saw rapid growth, expanding 21% and 24%, respectively. To strengthen skills of the software labor force, the SIPA has begun a program that places recent graduates with local firms to receive on-the-job training. Graduate students will be trained in high-level development skills and in supporting Software as a Service (SaaS) and enterprise architecture. Energy Thailand has emerged as one of the first countries in Asia to encourage alternative energy investment. In 2008, the government introduced its Alternative Energy Development Plan (AEDP), which aims for renewable sources to provide 20% of the countrys total energy consumption by 2022, significantly reducing dependence on fossil fuels.

SOURCES
Country Report: Thailand. IHS Global Insight. Employment market set for growth next year. www.nationmultimedia.com. (12/21/11) Thailands Economic Outlook. www.drsohn.com. (11/30/11) Thailand: Improvements in Higher Education Needed to Sustain Growth in Low and Middle Income East Asia. World Bank. (10/13/11) Thailand Automotive Cluster. Institute for Strategy and Competitiveness. (05/06/11) Is Thailand Really Short of Labor? Board of Investment. (08/11) Ministry opens job market, social security to foreigners. AMNewspaper. (01/20/12) PM Said Thailand Has Met Criterions To Become Detroit Of Asia. www.thaivisa.com. (12/17/05) The Detroit of Asia. Automotive Business Review. (11/08) Thai floods cut thousands of jobs, put many at risk. The Sun Daily. (02/28/12) Thai Flooding Has Many Impacts: Business Around The World Touched, Parts Makers Production Delays Expected to Last Months. emssolutionsinc.wordpress.com. (10/21/11) Thailands Skilled Labor Shortfall When Will it End? Thai-America Business. (2007) Thai Floods Sap Confidence. Business Week. (02/23/12)

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