The Thai Labour Solidarity Confederation organises International Workers’ Day (May Day) activities in Bangkok on May 1. Nutthawat Wichieanbut
Thailand will remain mired in the middle-income trap for another 10-20 years and Vietnam's economy will eventually eclipse the country if it fails to upgrade its workforce to keep pace with technological changes, warns Thailand Development Research Institute (TDRI).Yongyuth Chalamwong, advisor on human resource policy at TDRI, said the World Bank has spent 15 years urging Thailand to reform its labour policies by shifting from labour-intensive industries to technology-intensive sectors.
However, Thailand continues to employ more than 4 million low-cost migrant workers, despite having a domestic workforce of around 40 million, supporting labour-intensive industries because migrant workers are less than half the cost of Thai workers and are easier to recruit, he noted.
Thailand also emphasises university education, with more than 200 universities producing graduates whose qualifications often exceed the needs of industry (a vertical mismatch). Moreover, many graduates possess skills that do not match industry demand.
As a result, more than 300,000 new graduates are unemployed each year, representing an opportunity cost exceeding 10 billion baht annually, noted TDRI.
