Since early 2026, Thailand's labor market has faced continuous pressure, including layoff news, tougher job hunting, and income recovery lagging behind living costs. Although Thailand's unemployment rate remains relatively low at about 1% compared to many countries, the underlying figures reveal notable vulnerability because many people still have jobs but their incomes are insufficient for living expenses.
Recent research from SCB EIC shows that employment problems are expanding across many groups—from new workers and highly educated individuals to middle-aged and elderly workers—while those employed are experiencing reduced working hours and income.
This article from Thairath Money explores 10 realities currently shaping Thailand's labor market, which may have ongoing impacts, to help workers of all ages recognize risks and prepare accordingly.
1. Those aged 40+ face increasing unemployment risk—not just recent graduates.
The risk of unemployment is expanding from youth to middle-aged and older workers. For ages 45-54, the unemployment rate rose from 0.19% in 2025 to 0.48% in Q2/2026—2.5 times higher. For those 55 and older, it increased from 0.08% to 0.27%, a 3.4-fold rise, more than double pre-COVID-19 levels.
Though unemployment rates remain lower than among youth, this is a warning sign because people in this age group often have mortgage, car loans, and family responsibilities, and returning to the labor market at the same position and income may not be easy.
2. Even university graduates find it hard to get jobs; education is not a guarantee.
University graduates have the highest unemployment rate at 1.7% in Q2/2026, followed by diploma holders at 1.48%, indicating that higher education does not guarantee employment if skills do not match business needs.
At the same time, the problem extends to lower education levels: junior high graduates' unemployment rose from 0.67% to 0.92%, and those without education rose from 0.40% to 0.62% compared to 2025.
3. The industrial sector has the fastest rising unemployment.
The industrial sector saw the fastest increase in unemployed persons, rising 85% in Q1 and 36% in Q2/2026 compared to the previous year, totaling about 46,000 unemployed.
This reflects pressures on manufacturing from competition, costs, and structural changes. However, not all factories are equally affected, so workers should monitor their industry's business direction and adaptability.
4. The service sector has the largest number of unemployed.
The service sector had about 86,000 previously employed unemployed persons in Q2/2026—about 41% of this group—increasing 28% from the previous year. Wholesale and retail trade had 46,000 unemployed, or 22%, despite an unemployment rate of just 0.65%.
This shows that industries with high unemployment rates do not always have the most unemployed people; the size of employment must also be considered, especially in consumer-sensitive service and retail businesses.
5. Construction materials and basic metals are sectors with sharply rising unemployment rates.
Construction materials and basic metals had the highest unemployment rate within manufacturing at 1.73% in Q2/2026, up from 0.49% in 2025, with about 7,300 unemployed—fewer than wholesale and retail trade's 46,000.
However, not all sectors face increased pressure; plastics, rubber, automotive parts, construction, transport, and finance saw reduced unemployment, indicating varied risk across industries.
6. Having a job doesn't mean sufficient income; underemployed workers rise to 8.2 million.
Those still employed face increasing income vulnerability. In the first half of 2026, underemployed workers—those working less than 35 hours per week—increased 7.4% to 8.2 million, while those considered effectively unemployed rose 4.9% to 3.3 million.
This shows that employment status does not always mean adequate income, as some work fewer hours than desired and cannot earn their full potential.
7. Reduced working hours may cut overtime pay and income opportunities.
Average working hours for Thai workers fell 0.4% in the first half of 2026 to 42.4 hours per week. For those relying on overtime or hourly wages, this reduction directly affects monthly earnings.
The risk is not only job loss but also less visible forms—working the same position but receiving reduced income.
8. Freelancers are more vulnerable, with real wages down over 10%.
Average wages for Thai workers shrank 0.4% in the first half of 2026 compared to the prior year. Freelancers' incomes dropped 2.2%, while formal workers' incomes grew 0.9%. Adjusted for inflation, freelancers' real wages in Q2 are over 10% lower than in 2024.
This reflects a K-shaped recovery where different worker groups experience unequal impacts, especially freelancers, traders, and casual laborers facing irregular income and greater financial risk.
9. Salaries may no longer maintain purchasing power as before.
With slow or shrinking income growth but ongoing living costs and debt payments, disposable income for savings and spending declines, especially for households with mortgages, car loans, or accumulated debt.
Vulnerability can arise even among those with steady jobs and no layoffs, since true security depends not only on receiving a salary but also on whether income covers expenses and financial burdens.
10. The labor market remains at risk if global economic shocks increase.
SCB EIC projects Thailand's labor market will stay weak for the rest of 2026, with rising unemployment and deteriorating job quality—especially if Middle East conflicts persist, keeping energy prices and transport costs high.
Businesses could face higher costs, limiting hiring or wage increases, while workers must cope with rising living costs and stagnant income growth. This risk could transfer from the global economy to Thailand's labor market and households.
Source: SCB EIC
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