Employment in Thailand is expected to remain weak next year, with new recruitment limited to only certain industries, including tourism and food and beverages, says the Employers' Confederation of Thai Trade and Industry (EconThai).
The unpleasant outlook has been attributed to the global economic slowdown, which is dealing a blow to the country's economy.
"Thailand's employment situation has not significantly improved since the pandemic," said Tanit Sorat, vice-chairman of the EconThai.
Demand for new workers should come from industries with a high growth potential. In addition to tourism and food and beverages, others include electronics and energy, he said.
The government is promoting targeted S-curve industries which require highly-skilled workers for the production of new generation cars and smart electronics, for example. But these industries are currently facing a labour shortage.
Thailand is struggling to deal with many economic challenges, including a high level of household debt.
"We expect the economy to grow by 2-2.5% and exports to undergo a contraction of -1% this year," said Mr Tanit, adding that the confederation believes the rate of GDP will improve next year.
Thailand currently has a total of 6 million employees in the manufacturing sector, but its capacity utilisation stands at 64%, according to EconThai's estimates. This results mainly from sluggish exports, following the economic slowdown among Thailand's trading partners.
Mr Tanit said the national tripartite wage committee, which consists of representatives from the government, employers and employees, will meet today to discuss a new daily minimum wage.
The committee plans to submit its wage proposal to the cabinet next week.
"The new wage will take effect on Jan 1, 2024 because the government wants it to be a New Year's gift for the people," said Mr Tanit.
"Businesses want the rate calculation to be based on inflation and economic circumstances."
The Pheu Thai Party, which leads the coalition government, proposed a wage increase to 600 baht a day by 2027, starting with a hike to 400 baht next year.
Mr Tanit said employers agree with an increase in the daily wage, but the 400-baht rate is too high.