Thailand’s Ageing Society And Labour Shortage Could Affect Economy

The country of Thailand is one of the top travel destinations in Southeast Asia. It is also a magnet for investors staying in business hotel in Sathorn because of the many opportunities in the country. There are a number of things though that concerns Investors Service by Moody.

According to Moody’s, the country has a strong fiscal standpoint and its external vulnerability is quite low because it has strong credit despite the political issues that keeps on haunting Thailand. This might not last long because the economic growth of the nation might be hindered by a number of factors including shortages in labour workers, ageing society and moderate level of competitiveness among employees. This will not only impact the economy but the public finances too.

In a report by Moody’s, the potential for growth might not be looking food in the future because of the ageing population in the increasing rate of migration. In addition, despite data proving that the education standards in the country is high compared to average nations under the same income category, it is still subpar compared to other countries in Asia.

If there is no policy reform to answer these issues, the demographic will get worse and the skills will not develop which will eventually impact on the economic competitiveness of the country. Just like other countries under Asean, it is also facing major changes in its economic structure including the rapid ageing of its citizens, the lacking in human capital and the moderate level of competitiveness among workers.

Compared to Malaysia, the per capita income of Thailand is lower since it greatly depends on agricultural workforce. Of the total employment in the country, agriculture is responsible for one-third. Naturally, agriculture is not as productive as other industries.

While many investors are booking business hotel in Sathorn to find their luck in Thailand, the country is facing skill shortages which might affect its ability to handled industries wherein skilled labour is a priority. This will also put the country into a questionable state as it might not be able to sustain production expansions.