Thai Unemployment Rises to 401,000, New Graduates Hit 44%
Thailand’s unemployment rose to 401,000 in Q2 2026, a 10% increase and the highest level in seven quarters, with new graduates accounting for 44% of the jobless. The trend is driven by a mismatch between education and labor‑market needs, compounded by rapid AI adoption. Experts warn that without better alignment of skills and stronger demand for high‑skill workers, youth unemployment could persist.
KBank Research Center noted that, looking ahead to 2025‑2029, Thailand will need around 1.1 million high‑skill workers to support target industries such as aviation and logistics, smart electronics and robotics for industry, and digital sectors, which together account for more than 69% of the demand. On the supply side, however, over 60% of Thai students still graduate in humanities and social sciences, while the share of STEM graduates has slipped from 23.2% in 2020 to 22.3% in 2025. Consequently, aligning workforce output with market needs remains a major challenge for the country. Three issues to watch that could affect Thailand’s labor market in the near term are: 1) Persistent skills mismatch, forcing workers to acquire new abilities in technology and health to meet future industry demands and cope with a super‑aged society; 2) K‑shaped economic recovery creating inequality, with fragile consumer spending, intense competition, and high operating costs limiting businesses’ revenue‑generation and hiring capacity; 3) Technology disruption from AI and automation putting low‑skill workers and new graduates at risk of replacement, requiring firms to balance labor and technology use appropriately.
