Thai workers face severe financial strain in 2026, carrying household debt nearing 500,000 baht. A survey found 98% are heavily indebted with no savings, caused by rising living costs and declining income. This has led to the first negative cash flow during Labor Day in five years. The private sector is pressing the government to extend migrant workers' permits to address the critical labor shortage.
Ms. Umakamon Sunthornsurat, Assistant Director of the Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce, revealed results from a 2026 survey on the status of Thai workers earning no more than 15,000 baht, based on 1,250 samples nationwide. It showed that 98% of workers are in debt, with only 2% debt-free. Average household debt reached 494,505 baht, up 14.4% from 432,318 baht in the 2025 Labor Day survey. Of this debt, 87% is formal sector debt at 9.42% annual interest, and 13% informal at 10.72% monthly interest. Monthly repayments average 10,867 baht. Among workers, 62% pay debts in full, 33.7% partially, and 4.3% defer payments. Due to this debt, 86.7% of workers have significantly reduced their spending.
The causes of debt include incomes insufficient to cover expenses, rising prices, reduced earnings, increased debt burdens, and higher loan interest rates. Additionally, 79.1% of workers have no savings, while only 20.9% do. This forces more borrowing from both formal and informal sectors. Most workers lack side jobs. When asked about unemployment risk, 23.2% considered it moderate, 21.9% high to very high, 24.9% none, and 30% low to very low.
Moreover, 68% of respondents believe the current minimum wage is very inadequate because income does not cover rising costs of goods and living expenses. They desire improved quality of life and carry heavy debt. The appropriate minimum wage is considered to be 495 baht per day. If employers cannot raise wages, workers expect increases to match rising transportation, utilities, loan interest, food, and housing costs.
, Mr. Thanawat Polwichai, President of the University of the Thai Chamber of Commerce, and Chair of the Advisory Board of the Center for Economic and Business Forecasting stated that Labor Day spending this year is expected to total 2.1 billion baht, down 3% from 2.185 billion baht last year. This is the first negative growth in five years and the lowest expansion rate in the same period, following a 14.9% decline in 2022. This clearly reflects Thailand's economic slowdown, as consumer spending has continued to decline since Songkran.
“There are no signs yet of mass layoffs or salary cuts, but opportunities for side jobs are decreasing, with fewer working hours and overtime. This causes workers to worry about future income, indicating a slowing economy, though not yet a crisis.”
, Mr. Phot Aramwattanon, Chairman of the Thai Chamber of Commerce and the Council of Thai Chambers of Commerce, said the business sector, especially in the eastern provinces of Chanthaburi, Rayong, Sa Kaeo, Prachinburi, and Trat, is facing a severe shortage of migrant workers. This directly impacts production, services, and the country’s competitiveness. The labor shortage in Thailand is systemic, affecting all legally employed migrant workers from Myanmar, Laos, Vietnam, and Cambodia, who are vital to manufacturing, agriculture, construction, and services.
“The Joint Private Sector 3-Institutes Committee (JPSC) has urgently proposed that the government consider extending work permits for migrant workers of all nationalities. A formal letter has already been sent to the Minister of Labor. We hope for coordinated action between the government and private sector to prevent an immediate loss of these workers from the system.”
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