Changes in the labor market and international migration since the economic crisis in Thailand

Abstract

The economic crisis in July 1997 led to a sharp increase in unemployment and underemployment, particularly among workers with primary and lower secondary education, a drop in real earnings, and an increase in poverty incidence. Labor surplus and poverty pressures during the economic downturn likely boosted labor migration. New government measures in promoting overseas employment and the facilitation of recruitment agencies and migrants' social networks encouraged the outflows. Data from the Ministry of Labor indicate higher levels of overseas labor migration, especially to Taiwan. Most Thai overseas workers have a primary education and are engaged in unskilled labor. Although the government has started to provide skills training to help workers adjust to the needs of the labor market, more measures are needed to promote sustainable employment and human resource development, especially in the rural areas. Better protection for Thai workers overseas is another priority.