Thai Economy: NESDC Warns of SME Job Losses and Graduate Unemployment Crisis

The National Economic and Social Development Council reveals a slight drop in unemployment but flags a worrying trend of SME closures and a significant hurdle for new graduates entering the workforce, as employers favour experienced or freelance staff

 

Thailand's National Economic and Social Development Council (NESDC) has expressed significant concern over the state of the nation's job market, particularly the impact of small and medium-sized enterprise (SME) closures on employment and the increasing difficulty for recent graduates to secure work.

 

In its latest Q1 2025 Social Outlook report released on Monday, the NESDC noted a marginal decrease in the unemployment rate to 0.88 per cent from 1.01 per cent in the same period last year.

 

However, this figure masks underlying anxieties regarding job security and future employment prospects.

 

Danucha Pichayanan, Secretary-General of the NESDC, presented the social situation findings for the first quarter of 2025, revealing that the total employed population stood at 39.4 million, a 0.5 per cent reduction year-on-year.

 

While agricultural employment remained stable, job numbers in non-agricultural sectors, including manufacturing, hospitality, and retail, saw a decline.
  



 

Despite an ongoing recovery in the tourism sector, related employment, particularly in hotels and restaurants, continued to fall, notably affecting temporary staff.

 

Average weekly working hours, however, edged up to 40.8 hours from the preceding quarter.

 

The report also highlighted a rise in 'underemployment', where individuals are working reduced hours or in roles beneath their skill level, especially within the trade and service sectors.

 

This trend is largely attributed to the broader economic slowdown.

 

A key concern for the NESDC is the urgent need for business adaptation, particularly among high-employment SMEs.

 

The council noted that over 24,000 SMEs and 1,234 factories have ceased operations recently, severely impacting job creation. The government is urged to prioritise fostering technology adoption, innovation, and upskilling the workforce to prepare for future labour market shifts.

 

Initiatives for lifelong learning and skill development will be fast-tracked to ensure new graduates are well-equipped.
 

  



 

Of the approximate 360,000 unemployed individuals in Q1, the majority are recent high school and university graduates lacking work experience.

 

Danucha underscored that "new graduates" face the highest employment risk, particularly those without specialised skills or practical experience.

 

A survey cited by the NESDC found that over 89 per cent of executives are reluctant to hire fresh graduates, citing a perceived lack of experience, inadequate skills, and poor professional etiquette.

 

Consequently, many employers are opting for freelancers or retired personnel, or simply leaving positions unfilled.

 

In light of these findings, the NESDC stressed the importance of graduates proactively developing both their practical skills and professional attitudes.

 

Concurrently, the education sector must urgently adapt its curriculum and teaching methods to align more closely with current market demands.

(2025/06/09-00:00)