Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Employment Policy Convention, 1964 (No. 122) - Thailand (Ratification: 1969)

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Articles 1 and 2 of the Convention. Implementation of an active employment policy. Labour market trends. In its previous comments, the Committee requested the Government to provide information on the implementation of the 12th Social and Economic Development Plan (2017–21) with respect to employment promotion, including its impact on labour market trends. The Government reports that the 12th Social and Economic Development Plan (2017–21), which was extended to 2022, was implemented through plans, policies and schemes, such as activities to prepare the workforce to meet labour market needs by way of skills development and capacity-building activities. It refers to the results of the Smart Job Centres that provided services to 1,096,307 jobseekers during the 2017–21 period, and to the Tri-Thep Centres which provided career development and guidance services to 135,693 participants during the same period. In terms of employment trends, the Government provides statistical data concerning employment, unemployment and visible underemployment, as well as information on the size and distribution of the informal economy. The Committee notes from the 2021 data that the total number of employed persons in both the formal and informal economy was measured at 37,705,741 workers, decreasing slightly from 2020, with 20,453,927 men and 17,251,814 women. In 2021, the total number of workers in the informal economy was 19,598,061, decreasing from 20,364,391 in 2020. Looking at the share of informal economy workers by economic sector in 2021, most of them are employed in the agricultural sector (58 per cent), followed by the trade and service sector (32.4 per cent). Referring to the unemployment rate that was decreasing at the end of the reporting period, the Government indicates that it is a good sign of the recovery of the employment situation from the COVID-19 pandemic that hit Thailand in 2020. The Committee notes the adoption of the National Strategy (2018–37), the long-term action plan which will guide the formulation of employment policies, and the 13th National Economic and Social Development Plan (2023–27), which is the key mechanism to guide the implementation of the National Strategy. The Committee notes from the National Strategy document that Thailand will need to prepare for rapid changes brought upon by disruptive technology in order to minimize any negative impacts, especially if the access to technology, infrastructures and knowledge of different income groups is a key constraint. Disruptive technology will affect employment and forms of employment and occupation, higher capacity workforce will be more demanded while some occupations will be replaced by automation, especially low-skill jobs, which will pose a risk for some population groups, particularly those who are unable to keep pace or lack up-to-date knowledge and skills.

The Committee welcomes the reference to measures aimed at accompanying the rapid transformations in the economy and the world of work, including those occasioned by disruptive new technologies. The Committee considers that employment policies represent a very important tool which, if properly used, allows member States to anticipate and make the necessary adaptations to keep pace with these changes and challenges. The Committee observes that an ever increasing number of countries have started mobilizing the potential of employment policy in this respect, including by adopting measures to : (i) promote lifelong learning and skills development by providing funding for training programmes, and by making it easier for workers to access education and training opportunities; (ii) encourage innovation and entrepreneurship by providing funding for research and development, and by creating an environment that is conducive to business growth; (iii) facilitate labour market transitions by making it easier for workers to move between jobs and industries without losing their social protection entitlements, and by providing support for workers who are displaced by new technologies; (iv) strengthen social protection by expanding the coverage of unemployment benefits and other social protection benefits, and by providing support for workers who are retraining or transitioning to new jobs; (v) support investing in digital infrastructure to ensure that everyone has access to the tools they need to succeed in the digital economy; (vi) support workers in the transition to new jobs by providing retraining programs, job placement services, and other assistance; (vii) encourage dialogue between employers and workers to help identify challenges and opportunities, and to develop solutions that benefit both workers and businesses; or (viii) promote responsible innovation by establishing ethical guidelines for the development and use of new technologies in a way that benefits society and does not harm workers or the environment. In this respect, the Committee requests the Government to provide detailed information on the implementation of the 13th National Economic and Social Development Plan (2023–27) with respect to employment promotion, indicating also whether it intends to implement measures as those mentioned above. It also requests the Government to provide updated statistical data disaggregated by sex and age on the labour market situation, including trends in employment, unemployment and visible underemployment, as well as information on the size and distribution by sector of the informal economy.

Promoting transition from the informal to the formal economy. The Government indicates that it continues to promote formal employment, in accordance with the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), by extending access to social security benefits to workers in the informal economy and developing draft legislation to tackle this issue. The Committee notes with interest that the number of workers in the informal economy who are insured under section 40 of the Social Security Act (B.E. 2533 (1990)) increased every year during the 2017–21 period, from 2,432,927 in 2017, to 3,242,579 in 2019, and 10,664,848 insured persons in 2021. It also notes from the 13th National Economic and Social Development Plan (2023–27) that informal economy workers can opt into the voluntary retirement savings systems with government co-sponsored contributions as a way to ensure old-age income security. However, only around 35 per cent of workers in the informal economy opt for these systems, thereby demonstrating the limits of voluntary insurance as a mechanism to extend protection and reach universal social protection. With respect to the measures taken, the Government indicates that the Ministry of Labour established an action plan on informal worker management (2017–21), which resulted in the promotion and protection of 3,618,731 informal economy workers in 2021. In addition, 76 provincial informal worker coordination centres and 253 provincial community service units were established to provide assistance to informal economy workers. Moreover, the Ministry of Labour has established a working group for the National Promotion and Development of Informal Workers Act, which includes representatives from government, employers’ and workers’ organizations. The Government indicates that the Cabinet approved the draft bill in principle in December 2021 and the bill is moving towards adoption. The draft bill provides for the creation of a National Committee on the Promotion and Development of Informal Workers, which will develop strategies and measures for the informal economy, as well as consult with informal workers’ organizations.

The Committee welcomes this information and the recognition by the Government that employment policies play a significant role in promoting transitions from the informal to the formal economy by addressing the factors that drive individuals and enterprises to operate informally. As such, national best practices suggest that when properly designed and implemented, they can play a catalytic role in accelerating the transition from the informal to the formal economy, leading to more inclusive, productive, and resilient labour markets by creating an enabling environment that encourages formalization and by providing targeted support to facilitate the transition process. The Committee invites the Government to provide further information on specific measures taken to tackle the multiple challenges faced by workers in the informal economy, indicating in particular whether the measures taken or envisaged include some of the good practices in this regard: (i) reducing administrative burden and red-tape; (ii) strengthening and extending social protection as a means to incentivizing the enrolment of enterprises and their workers; (iii) promoting access to finance and business development services, including access to credit and training, as these are often lacking for informal enterprises; (iv) enhancing labour market placement and intermediation and skills development services; (v) raising awareness and promoting formalization; (vi) tailoring policies to specific sectors and occupations as the informal economy is not monolithic, and informalization patterns vary across sectors and occupations; (vii) promoting dialogue and collaboration among all relevant stakeholders for effective policy formulation and implementation; (viii) monitoring and evaluating policy impacts as this is crucial to assess policy effectiveness in promoting transitions from informality to formality. The Committee also requests the Government to continue to provide information, including disaggregated data, on the impact of the measures implemented to promote the transition to formal employment. In addition, noting with interest the considerable increase in the scope of persons covered by social protection, the Committee asks the Government to provide further information on the combination of measures the deployment of which was instrumental to such a positive outcome and to indicate how this extension of social protection was correlated to the objective of reaching decent, full, productive and freely chosen employment.

Older workers. The Government indicates that Thailand is becoming an ageing society which is a major demographic challenge. In response to such changes, the Government has given importance to the promotion of employment of older workers through various measures and programmes, which include the Promotion of Self-Employment of Older Workers, the District One (Folk) Wisdom Programme, measures by public employment services, and skills development training courses. The number of older persons (those 60 of age and older) gradually increased during the 2017–21 period, with 4.06 million in 2017, 4.23 million in 2019, and 4.88 million in 2021. Older men accounted for 2.78 million people in 2021 and older women accounted for 2.10 million. The majority of older workers were agricultural and fishing workers, totalling almost 3 million workers in 2021. In terms of employment services, the Committee notes from the report that there were 9,263 older jobseekers that applied for jobs through the Ministry of Labour’s Employment Service Centres from 2017 to 2021, and 9,076 obtained employment. In the same period, there were 43,609 older workers that received skills development training and 15,356 older persons participated in a self-employment programme.

The Committee observes that demographic shifts indeed present a number of challenges for employment policy, including in terms of skills shortages, age discrimination, or health and safety concerns. It notes that successful employment policies have tended to include a selection of measures to secure positive employment outcomes, such as: (i) promoting lifelong learning through training programs, financial assistance, and flexible learning options; (ii) ensuring equal employment opportunities by providing clear guidelines for employers, promoting awareness of age discrimination among workers, and establishing mechanisms for workers to report and challenge age discrimination; (iii) promoting workplace flexibility by encouraging employers to adopt flexible work arrangements, such as part-time work, telecommuting, and flexible hours; (iv) promoting workplace health and safety, including by providing appropriate training and equipment, and implementing ergonomic principles; (v) raising awareness of the benefits of an ageing workforce to reduce negative stereotypes about older workers and promoting a more inclusive workplace; and (vi) providing funding for training programs for older workers or offering tax benefits to employers who hire and retain older workers. Other successful measures in this respect include providing support for older workers who are starting their own businesses and conducting research and analysing data on the ageing workforce for informed policymaking. In view of the above elements and future demographic challenges related to an ageing society, the Committee requests the Government to provide information on the measures adopted, in consultation with the social partners, to address these labour market challenges. It also requests the Government to continue to include statistical data, disaggregated by sex and age, on the results of the measures taken to increase employment opportunities for older workers and reduce the barriers they may encounter in accessing, advancing and remaining in employment.

Promotion of women’s employment and prevention of discrimination. The Government indicates that Thailand continues to enforce the Gender Equality Act (B.E. 2558 (2015)) and promote non-discrimination in employment between women and men according to section 15 of the Labour Protection Act (B.E. 2541 (1998)). The Committee refers in this regard to its comments on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). The Government indicates that the implementation of women’s employment promotion activities and the prevention of discrimination include the promotion of breastfeeding areas in enterprises and the establishment of childcare centres in workplaces. From January to June 2022, 112 enterprises established breastfeeding areas. Statistical data on the impact of the measures taken to promote increased participation of women in the labour market show that the labour force participation rate of women varied from 59.38 to 60.07 per cent during the 2017–21 period, while it varied for men from 76.17 to 77.10 per cent during the same period. The Committee notes from the report that out of 29.58 million women aged 15 and over in 2021, only 17.65 million were employed (59.7 per cent).

The Committee notes that the inclusion of specific measures into national employment policies to promote women’s employment and prevent discrimination represents an important component of gender-sensitive and gender-responsive employment policies. Based on comparative good practices, these often include : (i) promoting flexible work arrangements so as to allow better work–life balance for both men and women; (ii) investing in women’s education and training by providing scholarships and financial aid, and by expanding the availability of vocational training programmes for women; (iii) addressing gender stereotypes and discrimination by implementing anti-discrimination laws and raising awareness of gender equality issues; (iv) promoting women’s entrepreneurship by providing funding and support for women-owned businesses, and by creating an environment that is conducive to business growth; (v) collecting and analysing gender-disaggregated data to inform policy decisions and interventions for understanding the challenges and opportunities facing women in the workplace; (vi) strengthening enforcement of labour laws by increasing the number of labour inspectors, and by raising awareness of workers’ rights; (vii) promoting a culture of gender equality in the workplace by providing training for employers and employees on gender equality issues, and by recognizing and rewarding businesses that promote gender equality; (viii) supporting women’s organizations and promoting women’s empowerment by providing funding and resources, and by creating an environment that is conducive to their work; and (ix) providing affordable and accessible childcare by securing funding for childcare subsidies and expanding the availability of childcare options, such as daycare centers and preschools. By reference to the above, the Committee requests the Government to provide information on the types of measures adopted at the national level to promote employment of women and to continue to provide information, including statistical data disaggregated by sex and age, on the impact of the measures taken to promote increased participation of women in the labour market at all levels, and to prevent discrimination in terms of employment. It also requests the Government to provide information on the consultations held with the social partners with respect to the measures adopted.

The Committee is raising other matters in a request addressed directly to the Government.