NESDC Reports Unemployment Nearly Hits 400,000 in Q1, Up 9.9% as Workers Face Overtime Cuts
Thailand's unemployment climbed to nearly 390,000 people in Q1 2025, a 9.9% jump from the previous quarter, as workers face reduced hours and income amid geopolitical tensions and industry shifts.
The National Economic and Social Development Council (NESDC), led by Secretary-General Danucha Pichayanan, reported in its Q1 2025 Thai social conditions report that the unemployment rate has reached 0.94%, affecting approximately 390,000 people—up from 280,000 people (0.70%) in Q4 2024, marking a 9.9% increase in joblessness. Long-term unemployment rose sharply by 87,000 people, representing a 27% increase year-on-year. Under the social security system, unemployment claims increased from 1.78% to 2.00%, with 242,000 people claiming unemployment benefits, while the number of underemployed workers grew by 4.4 million, up 3% from the same period last year.
The NESDC identified three key concerns to monitor:
1. Middle East tensions could impact workers in transportation, construction, manufacturing, and tourism sectors, potentially reducing working hours and inadequate income.
2. Rising underemployment in 2023-2024, with hidden unemployment increasing by 220,000 people (17.8% year-on-year). Over 65% of these workers have primary education or below, primarily employed in agriculture, construction, and manufacturing. Their average income of 6,700 baht monthly significantly lags the overall average wage of 16,000 baht, necessitating additional income sources, particularly for agricultural workers.
3. Employment risks in the electric vehicle (EV) industry transition, as the EV sector expands while the internal combustion engine vehicle industry declines. This impact extends beyond factory workers to include the entire supply chain, requiring workers to transition or relocate to emerging industries in coming months.
