Unemployment and labor issues shake 8.7 million Thai workers who face severe impacts from AI taking jobs if they fail to adapt quickly. Meanwhile, the under-25 age group shows the highest growth in credit card debt. The National Economic and Social Development Council (NESDC) highlights Thailand's social conditions in Q1 2026, emphasizing that labor adaptation is crucial for the country's development.
According to NESDC data, the labor situation shows improving employment trends, with 41.2 million people employed, up 4.6% from Q1 2025, driven by renewed growth in agricultural sector employment.
Non-agricultural sectors continue to expand, with wholesale and retail trade showing the highest growth, followed by transportation and warehousing. The overall unemployment rate rose to 0.94%, equating to 390,000 unemployed, mainly from previously employed groups, while those never employed decreased. Additionally, underemployment increased by 3.0% due to growth in underemployment outside agriculture, and long-term unemployment rose by 27.0%.
Key unemployment concerns include: (1) mitigating impacts from Middle East conflicts on employment and worker incomes amid persistently high living costs, with urgent measures needed, especially job matching in labor-demanding sectors.
(2) Underemployment trends rising, with over 220,000 underemployed in 2025, a 17.8% increase from 2024, mostly less-educated and in agriculture; thus, enhancing productivity and supplementary occupations is necessary to increase working hours and income.
(3) Employment risks in industries linked to electric vehicle (EV) manufacturing as combustion engine vehicle production declines, risking displacement of workers in combustion engine parts manufacturing to other sectors.
Household debt in Q4 2025 rose by 0.05% to 16.44 trillion baht, pushing the household debt-to-GDP ratio to 86.7%, up from the previous quarter. Personal loans overdue over 90 days (NPLs), according to credit bureau data, totaled 1.31 trillion baht, or 9.59% of total loans, increasing from 9.45% last quarter, mainly from housing and personal loans.
Key concerns include: (1) consumption behavior of the younger generation, who often purchase goods and services based on online reviews or trends, leading to the highest increase in credit card and personal loan debt among under-25s compared to other groups.
In 2025, financial skills development should be accelerated starting from primary education. (2) The launch of branchless commercial banks (Virtual Banks) requires monitoring for increased debt risks, as seen in China where some borrowers easily fall into debt cycles, and in the Philippines where digital banks have higher NPL ratios than traditional banks.
(3) The influence of Finfluencers on household financial behavior in the digital era is significant; some may spread incomplete or misleading information, underscoring the need for careful content regulation.
