Jobless rate hits 1.2% due to drought

Jobless rate hits 1.2% due to drought

The unemployment rate in the first quarter rose to 1.2%, or about 400,000 people, up from 0.97% in the same period one year earlier and worsening from 1% in the previous quarter, according to the National Economic and Social Development Board (NESDB).

The rise in the number of jobless was triggered by greater automation in the farm sector and a drought, it said.

Jobs have also been lost in the export sector, which is still in recovery mode, as well as the construction sector, said NESDB secretary-general Porametee Vimolsiri.

Mr Porametee said in the past four years employed workers in the agriculture sector decreased by 1.3 million because of drought and the falling prices of farm produce.

In the first quarter, the number of employed people stood at 37.4 million, down 0.6% from the same period last year. The job rate in the farm sector fell 1.4%.

Despite the gloomy results for the quarter, employment recovered in April for this sector, rising 7% as the effects of the drought eased and prices started to climb, Mr Porametee said.

Meanwhile, a survey by the NESDB showed that the bulk of workers in five core industries lacked the skill to operate advanced technology, while new university graduates were still considered insufficiently skilled by industrial employers.

The survey questioned 1,353 vocational-level employees and 239 entrepreneurs in 10 provinces nationwide in the following sectors: automotive and parts; electric and electronics; agriculture, including natural rubber and rubber products; food processing; and services including spas, rented accommodation and cruises.

Mr Porametee said the results showed that entrepreneurs remain concerned about workers not possessing the skills they need to upgrade. Many said the required training would be too financially burdensome.

Meanwhile, 85.5% of business operators endorsed "Thailand 4.0", a state scheme to embrace a new economic model based on innovation and technology, but they said SMEs needed more state help to upgrade.

The survey showed that 50% of entrepreneurs have adopted high technology.

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