3 1-1 GDP GDP growth rate Population size Labor force Labor participation rate Employed population
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3 INDEX Overview: Thailand 2 1 Economy GDP GDP growth rate 5 2 Population Population size 6 3 Labor force and the related statistics Labor force Labor participation rate Employed population Percentage of employed population by industry Employed population in formal and informal sectors Unemployed population, unemployment rate 21 4 Wages Monthly wages (average) 23 5 Hours worked Hours worked 26 About this document 29 About the information compiled in this document 29 Contact information regarding this document 29 Company profile 30 About PERSOL Research and Consulting 30 About PERSOLKELLY Consulting 30
4 Overview: Thailand Thailand is located in Southeast Asia, bordering Malaysia to the south and Cambodia, Laos, and Myanmar in the north. It measures approximately 510 thousand km, about 1.4 times the size of Japan. Its GDP was trillion baht in 2015 (399.2 billion USD) and has exhibited a high rate of growth. Its population was approximately million in 2015 and is on the rise, with a growth rate of about 0.5%. Furthermore, Thailand s labor force stands at approximately million; its employed population totals about million. The labor participation rate in 2015 was 78.6% for men and 62.1% for women, suggesting that many women are becoming breadwinners. Wages are on the rise overall. Average wages are higher in the government sector (19,770 baht in 2015) than in the private sector (12,088 baht in 2015). There are also huge disparities in wages by industry, with agriculture, fishing, and forestry, the industry that employs the greatest percentage of Thailand s workers, paying the lowest average monthly wages at 5,757 baht (in 2015). Geographically, wages are demonstrably higher in Thailand s capital of Bangkok than in other regions while the average wage in some industries is high such as Scientific and Technique (29,014 Baht) and Information and Communication industries (23,247 Baht), *GDP means nominal GDP. *Numbers of total GDP in USD are from data of the World Bank. *Currency exchange rate: 1USD=33.28 baht (as of August 1, Source: IMF Exchange Rate Archives by Month) In 2015, Thailand s economy posted a real GDP growth rate of 2.8%, continuing a gentle recovery. Consumption continued a trend of growth, but was not strong enough to buoy the consumption of durable goods such as automobiles. Exports also experienced a severe slump due to a decelerating world economy and decrease in the cost of petroleum. Perceiving slowing growth as an impending crisis, the Thai government has hammered out a rapid succession of new organizations and systems to promote and attract investment in high value-added industries and has taken a clear stance emphasizing investment in continuous growth. It is also pursuing initiatives to improve the business environment and respond to the demands of private enterprise. On the other hand, the number of businesses expanding into Thailand is increasing, and the country is gradually becoming a competitive market for Japanese companies active abroad. Source:2016 JETRO Global Trade and Investment Report(Chapter 2: Classification by Country & Region), Japan External Trade Organization (JETRO), Overview: Thailand 2
5 1 Economy In a continuing growth trend, Thailand s total GDP has increased year-over-year from trillion bahtin 2010 to trillion baht in Viewing GDP by industry reveals that the manufacturing industry accounts for the largest percentage at trillion baht, followed by the wholesale and retail trades and the repair of automobiles, motorcycles, and household goods at trillion baht and the agriculture, hunting, and forestry industry at baht. Thailand s GDP growth rate has fluctuated wildly, posting a high 11.9% in 2010, but sinking to 4.6% in It then rocketed to 9.3% in 2012, only to plummet in the following year, hitting 1.8% in In 2015, it once again rose to 3.1%. *GDP means nominal GDP. 1-1 GDP 1 Economy 3
6 1 Economy 4
7 1-2 GDP growth rate 1 Economy 5
8 2 Population Thailand s population rose year-over-year from approximately million in 2010 to approximately million in The annual population growth rate hovered at 0.5%. Examining the population by gender, women outnumber men by approximately 1.00 million. When classified by age, it is clear that the younger cohort is marginally on the decline, but the population 60 years and older is experiencing slight growth. There have been almost no shifts over the years in population by region. The northeast part of the country is home to the largest portion of the population. 2-1 Population size 2 Population 6
9 2 Population 7
10 2 Population 8
11 3 Labor force and the related statistics Thailand s labor force numbers approximately million; its employed population totals about million. The labor participation rate is a high 70.1%, but it is experiencing a slight decline. The decrease is particularly strong in the northern and northeast regions of the country. The labor participation rate among males is 78.6% and 62.1% among females. When classified by educational background, the largest percentage of the labor force consists of graduates from elementary school, at approximately 8.48 million, followed by those who have not completed elementary school, at approximately 8.33 million. Approximately 7.80 million have completed higher education or above (2015 statistics). Examining Thailand s employed population by industry, the largest cohort is engaged in agriculture, forestry, and fishing at about million, followed by manufacturing at about 6.36 million. When classified by occupation, agriculture, forestry, and fishing accounts for the largest cohort of the employed population. Among both men and women, the private sector employs the largest percentage of the employed population, followed by self-employment. The unemployment rate remained at low levels under 1.0% from 2011 to 2015, with the unemployed population totaling about 360 thousand. The unemployment rate was high in the northern section of the country from 2013 to 2014, but went on the decline in By educational background, the unemployment rate is highest among those who have graduated from higher education, with an unemployment rate of 1.8% in Labor force and the related statistics 9
12 3-1 Labor force 3 Labor force and the related statistics 10
13 3 Labor force and the related statistics 11
14 3-2 Labor participation rate 3 Labor force and the related statistics 12
15 3-3 Employed population 3 Labor force and the related statistics 13
16 3 Labor force and the related statistics 14
17 3 Labor force and the related statistics 15
18 3-4 Percentage of employed population by industry 3 Labor force and the related statistics 16
19 3 Labor force and the related statistics 17
20 3 Labor force and the related statistics 18
21 3-5 Employed population in formal and informal sectors Formal indicates an individual working in a formal sector covered by the Labor Protection Act. On the other hand, informal indicates an individual working in an informal sector, such as agriculture, forestry, and fishing or self-employment, which is not covered by the Labor Protection Act. 3 Labor force and the related statistics 19
22 3 Labor force and the related statistics 20
23 3-6 Unemployed population, unemployment rate 3 Labor force and the related statistics 21
24 3 Labor force and the related statistics 22
25 4 Wages Average wages for those employed in both the government and private sectors are increasing year-over-year. Average monthly wages are higher with government agencies, averaging 19,770 baht in 2015 compared to 12,088 baht in the private sector. When classified by region, average monthly wages among those employed in the government sector are higher in Bangkok (24,428 baht in 2015) than in other regions. Private sector wages also tend to be higher in Bangkok (average of 18,941 baht in 2015) than elsewhere. The disparity in wages between industries is large, with 2015 wages highest on average with extraterritorial agencies, followed by the mining and quarrying industry. On the other hand, average wages were lowest in the agriculture, forestry, and fishing industry, followed by domestic work. 4-1 Monthly wages (average) 4 Wages 23
26 4 Wages 24
27 4 Wages 25
28 5 Hours worked Weekly working hours in Thailand overall averaged hours in 2015: men worked hours, while women worked hours. The disparity between industries is large, with administrative services and support averaging the longest weekly working hours at and education averaging the shortest at Classifying the employed population by the number of working hours reveals that the percentage of the employed population working 50 hours or more per week is on the decline year-over-year; on the other hand, those working 40 to 49 hours per week (the largest cohort of the employed population) is increasing year-over-year. 5-1 Hours worked 5 Hours worked 26
29 5 Hours worked 27
30 5 Hours worked 28
31 About this document About the information compiled in this document The various data and commentary presented in this document has been compiled and written by the Persol Research & Consulting Co., based on information released at the time of this document s creation; its accuracy and completeness are not guaranteed. In addition, the Persol Research & Consulting Co. bears absolutely no responsibility for any damages incurred as a result of the use of the information in this document. Contact information regarding this document Persol Research & Consulting Co., Think Tank Headquarters Overseen by the Persol HR Data Bank, APAC thinktank-rc@persol.co.jp Tel.: About this document 29
32 Company profile About PERSOL Research and Consulting PERSOL Research and Consulting is the PERSOL Group s think tank and consulting firm. Through surveys and research, we uncover and clarify issues surrounding people and organizations in areas such as labor markets, human resources development, new forms of employment, and working styles. We also work to investigate and present solutions. We provide solutions in areas including organizational and personnel consulting, people analytics, assessments, talent management systems, human resources development, and employee training, based on the knowledge built up through our survey and research activities. We link these surveys, research, and solutions organically to help solve the various problems that arise in society and corporations. About PERSOLKELLY Consulting PERSOLKELLY Consulting aspires to be a leading global human resource consulting and professional services organisation committed to shape the future workforce by empowering individuals, organisations and societies. To further align the corporate brand strategy, PERSOLKELLY Consulting is a rebrand of BTI Consultants in Asia and Intelligence SMC in Hong Kong. These brands combine their vast experiences and knowledge in innovative talent development, HR & Management advisory, organisational effectiveness and insights-driven HR solutions to achieve optimal results for their clients in the regions. Today, PERSOLKELLY Consulting is represented in 6 countries, including Hong Kong, India, Indonesia, Malaysia, Singapore and China (operating under Intelligence Anchor Consulting). It is also in active collaboration with PERSOL Research and Consulting in Japan. PERSOLKELLY Consulting is an entity within the PERSOLKELLY company, a joint venture between PERSOL Group, and Kelly Services, Inc, forming one of the largest recruitment companies in Asia Pacific. Company profile 30
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