Bangkok, Thailand – Thailand’s labor market is entering a period of significant upheaval as businesses move away from traditional full-time employment in favor of part-time and contract-based roles. The National Economic and Social Development Council has issued a warning that this shift could seriously affect job security, wages, and workers’ legal protections.
Secretary-General Danucha Pichayanan emphasized that this is not a temporary trend. Companies, particularly large organizations, are increasingly restructuring their operations to reduce permanent positions. Recent data shows that over twenty-five percent of Thai companies are likely to cut staff or reorganize operations, a reflection of the uncertain economic climate.
Companies Shift from Full-Time to Contract Roles
The movement away from permanent full-time employment has been gathering momentum for over a decade. Danucha noted that the trend has been rising since 2013 and now extends to the nation’s largest firms. Instead of full-time staff, many companies are hiring permanent part-time and contract employees, a change that could limit workers’ access to benefits and legal protections.
Dramatic Growth in Part-Time and Temporary Employment
According to The Nation Thailand, employment patterns have changed dramatically in just a few years. Positions classified as permanent part-time have grown from six percent of the workforce in 2022 to over forty percent by 2024. Temporary and contract roles have surged as well, creating a landscape where stability and benefits are increasingly uncertain for employees.
Economic Pressures Challenge Thai Labor Market
Thailand’s labor market is also being influenced by broader economic pressures. New U.S. tariffs threaten exports, and mandatory reductions to zero percent tariffs on thousands of U.S. agricultural imports are expected to undermine the competitiveness of Thai goods. These external factors add to domestic uncertainties, compelling companies to adjust their staffing strategies to remain viable.
Foreign Worker Shortages Strain Key Industries
A shortage of foreign labor is creating additional challenges. Around 388,000 foreign workers have failed to renew their permits, and mandatory repatriation measures by the Cambodian government are further reducing available labor. Construction, manufacturing, and agriculture are particularly affected. In response, the Thai government has approved the import of workers from Sri Lanka, Nepal, the Philippines, and Indonesia to fill the gap.
Workplace Safety Remains a Critical Concern
Workplace safety continues to be a pressing issue. Research showed that while severe accidents are relatively rare, incidents resulting in the loss of a hand or arm can drastically reduce a worker’s earning potential and social mobility. Danucha urged companies to maintain equipment, provide adequate training, and ensure compensation reflects the full cost of such injuries.
Signs of Resilience in Thailand’s Labor Market
Despite the challenges, some positive trends remain. Employment in non-agricultural sectors showed slight growth during the second quarter of 2025, and the national unemployment rate fell to 0.91 percent from 1.07 percent in the same period last year. However, the number of discouraged workers climbed to 2.1 million, highlighting ongoing anxiety among those seeking stable employment.
Experts Warn of Long-Term Labor Instability
Analysts caution that unless companies and policymakers respond decisively, Thailand’s shift toward contract-based employment could leave millions of workers exposed to financial insecurity and limited legal protections. The combination of flexible employment, labor shortages, and economic uncertainty creates a fragile environment that will test both workers and businesses in the years ahead.
