Monday, June 1, 2015

Unemployment Rate in Thailand


How does the government define and calculate the unemployment rate?

The unemployment rate is typically defined as the percentage of the active working force currently out of a job and seeking one. The Thai government essentially follows this definition, and their unemployment statistics are calculated by the Labor Force Survey (LFS).

Give some statistics on the unemployment rates for different regions, age groups, ethnic groups and gender in Thailand.
While Thailand has a total population of 67 million, it's labor force is roughly 40 million. Thailand actually has the FOURTH lowest unemployment rates in the world at 1%. Here is a breakdown by different categories, as well as a chart depicting Thailand's unemployment rates from 1986:

agriculture: 38.2%
industry: 13.6%
services: 48.2%

    Female Unemployment rate: 0.60%
      Male Unemployment rate: 0.60%

        North: 0.48%
          South: 0.53%
            Central: 0.85% 
              Bangkok: 0.26%
                Northeast: 0.93%


                How extensive are the labour market regulations in Thailand (e.g. minimum wage, job security, safety standards, length of workday/week/month and paid holidays)
                Thailand is a developing nation, and there is still a lot of child labor that goes on in low income regions, especially industrial, factory-abundant areas. Despite it's relative lack of prosperity, however, Thailand has fairly generous labor standards. There is compensation for sick, pregnant, and young workers, and children under the age of 15 are not allowed to work. A minimum wage exists, around 300 baht (~10 USD) per day, and work hours cannot officially exceed 8 per day.


                What does the government do to reduce the level of unemployment? Can you identify which policies are interventionist or market oriented?
                The government has enacted various policies since the late 1900's to combat unemployment in Thailand. Most significantly, the Thai government has started several market-based programs to increase the quality and quantity of their workforce, providing cheap, accessible education in low income regions and ensuring quality public education for all. They've attempted to subsidize struggling farmers with interventionist policies like the infamous "rice scheme". Another example is using the military to improve the quality of infrastructure throughout Thailand (market based).

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