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Changing Dynamic of Migrant Workers in Thailand: Assessment and Implications

Thailand has successfully implemented export-oriented policy to drive its economy since the 1980s. To be precise, Thailand’s export-oriented policy focuses on manufacturing sector, which requires a large number of low-skilled workers to produce goods at a minimum cost. Consequently, labor-intensive industries have called for larger low cost and low-skilled workforce. However, with declining birth rate and expanded education, Thai low-skilled workforce has been steadily shrinking. Instead, immigrant workers from Myanmar, Cambodia, and Laos have been filling this employment gap. As a result, Thai industries have depended heavily on low-skilled workers from its three neighboring countries. However, as AEC is taking its full effect and as Myanmar is implementing its political and economic reformations, experts predict that in the near future low-skilled immigrant workers from Myanmar, Cambodia, and Laos will have better domestic job opportunity, while labor shortage in Thailand is expected. This research attempts to study the dynamic, characteristics, as well as level of dependency on low-skilled immigrant worker in Thai production sector, comprising manufacturing and construction industries, by thoroughly examining relevant statistical data. The findings show that construction business employs the highest number of low-skilled workers, at 236,346, followed by agroprocessing and seafood processing businesses. However, seafood processing business has the highest level of relative dependency on immigrant workers, at 72.40 percent, followed by stone processing and livestock processing businesses. The results suggest urgent preparation for both public and private sectors related to manufacturing businesses with high level of low-skilled immigrant worker dependency.