People receive their first COVID-19 jabs (Photo: VNA)Bangkok (VNA) - Unemployment in Thailand is likely to soar this year because ofthe severe impact being felt by the third wave of COVID-19, warned the NationalEconomic and Social Development Council (NESDC).
Danucha Pichayanan, Secretary-General of the NESDC, said thethird wave of the pandemic is likely to be a prolonged affair and prevent theeconomy from reaching its goal due to a slowdown in activity.
"Workers in micro, small and medium-sized enterprises (MSMEs)might experience the most loss or have to accept reduced hours as thesebusinesses have been hit hard since last year. The GDP of MSMEs has contractedby 9.1 percent,” said Mr Danucha. "If the outbreak is not quicklycontained, these businesses may be unable to continue operations, resulting inthe permanent termination of employees and delaying recovery."
Danucha said workers in the tourism industry will also be laidoff more frequently.
He cited the Tourism Marketing Research Center of TAT as predictingthat tourism will likely return to normal in 2026. The effects of COVID-19 willdelay the resumption of normal tourism services and this will affect more thanseven million tourism workers. If the workers are laid off, they will be unableto return to work in the same field in the near future and may have to changetheir careers altogether.
He also warned there may not be enough job openings toaccommodate recent graduates. With an economy that is growing at a slower ratethan expected, entrepreneurs will postpone hiring new employees and this willaffect 490,000 new graduates. Meanwhile, last year's graduate and workerprogramme under the loan decree, which had a 12-month employment period, iscoming to an end and this may affect approximately 140,000 workers.
Danucha said workers' quality of life will be also affected astheir working hours have been reduced for six consecutive quarters. Those whoare unemployed due to COVID-19 are more likely to be unemployed in the longterm. Since the outbreak began in 2020, many laid-off formal workers havebecome informal workers, a group that has not been protected and lacks socialsecurity.
The NESDC reported on May 24 that the unemployment rate hit a12-year high in the first quarter of this year due to the fresh waves of COVID-19outbreaks.
The unemployment rate was 1.96 percent in the first quarter,representing 758,000 unemployed workers, up from 1.86 percent, 1.90 percent,1.95 percent and 1.03 percent in the fourth, third, second, and first quartersof 2020, respectively.
Thailand recorded 3,226cases of COVID-19 with 26 deaths on May 25, raising the tallies to 135,439 and 832, respectively. The number of patients logged in the 3rd wave ofCOVID-19 is 106,576, with 738 fatalities./.
Thailand recorded 3,226cases of COVID-19 with 26 deaths on May 25, raising the tallies to 135,439 and 832, respectively. The number of patients logged in the 3rd wave ofCOVID-19 is 106,576, with 738 fatalities./.
VNA
