Thailand: About 8.4 million may face job loss due to COVID-19

Thailand's National Economic and Social Development Council (NESDC) estimates that about 8.4 million workers in the kingdom may lose their jobs due to the COVID-19 pandemic.

In a report on Thailand's social situation and outlook for the first quarter of 2020 (Q1 2020), the state planning agency said 2.5 million workers in tourism sector, 1.5 million industrial workers and 4.4 million in the services sector (other than tourism) face the risk of losing their jobs.

According to the report, the number of unemployed persons in the country rose to 394,520 or 1.03 per cent in Q1 2020 -- up from 0.92 per cent in the same period last year.

Meanwhile, the NESDC said six million farmers have also been affected by the ongoing drought that had started mid-2019.

"The pandemic and the drought's impact on unemployment will be apparent in Q2 2020 and more clearly in the second half of the year," it said, adding that the report is based on the assumption that the pandemic can be controlled.

As the COVID-19 situation in the kingdom improved with low number of new cases daily, Thailand had started to ease its movement restriction measures by reopening businesses and venues starting May 3 in the first phase of relaxation to spur economic activities.

The second phase of relaxation started on May 17 and third phase is expected to kick-off June 1.

Meanwhile, the NESDC said approximately 520,000 graduates will be entering the market between May and July this year, and voiced concerns that there may not be jobs for them.

The council had slashed its forecast for the country's 2020 gross domestic product (GDP) to a contraction of between five and six per cent from a growth of 1.5 per cent to 2.5 per cent projected in February.

Thailand's GDP shrank by 1.8 per cent in Q1 2020 compared with Q1 2019 as the COVID-19 pandemic hit tourism sectors and reduced business activities.

--BERNAMA