Understanding the Thailand unemployment problem: comparison of Thai unemployment to Indonesia, Taiwan, and the United States

Abstract

This study attempts to understand the official population and unemployment data for Thailand. The research aims are to: (a) clarify and understand the Thailand labor force survey and compute adjustments to the Thai official population data so that they would be compatible with the data from other countries; (b) compare the Thailand official population and unemployment data to three other countries: Indonesia (a less developed Southeast Asian country); Taiwan (a developed Asian country); and the United States (a highly developed country); and (c) expand and develop innovative indexes (adjustments) to obtain a better understanding of the Thailand unemployment problem in comparison to the adjusted rates of the three other countries. The methodology of this study is primarily quantitative; it is an examination and reanalysis of existing data. The official data were gathered from the government websites of the four countries and E-Mail queries of officials in the Thai government. The Thailand official data, specifically in the year of 2001, were clarified and adjusted to be comparable to Indonesia, Taiwan, and the United States. Thailand had the lowest official unemployment rate in 2001, and Indonesia had the highest rate (more than double Thailand's). However, when the estimates of "seasonally inactive" persons were added to the official unemployment rates, Taiwan had the lowest rate, the United States and Thailand are essentially tied, and Indonesia had by far the highest unemployment rate. When the researcher added estimates of "seasonally inactive," "unpaid with job, but not at work," and "want a job, not looking" to the official unemployment rate, the results were the same as above: Taiwan had the lowest; the United States and Thailand were in the middle; and Indonesia had the highest percentage. Even using these adjustments, Thailand does not seem to have a serious unemployment problem. However, the researcher believes that three major issues lead to an underestimate of problems caused by unemployment in Thailand: sampling, availability of unemployment compensation, and underemployment. For example, in Thailand, family members who are not paid and persons who work even one hour a week are considered to be employed.