Concerns for 2.1 Million Workers at Risk of Employers Defaulting on Salaries
The National Economic and Social Development Council (NESDC) reports that there are currently 2.18 million workers in the system who have not received salaries from their employers, with 420,000 already unemployed, while another 1.76 million are waiting to see if their employers will resume operations.
Mr. Tosaporn Sirisamphan, Secretary-General of the NESDC, revealed that the council summarized the social situation in Thailand for the second quarter of this year, assessing the impact of COVID-19 on employment, which has led to a decrease of 700,000 employed individuals compared to the same quarter last year, bringing the total to 37.1 million, a decline of 1.9%. Unemployment has increased by 1.95%, or 370,000 individuals, compared to the same period last year.
The NESDC has tracked data showing that 1.76 million workers are employed but have not received salaries due to temporary or partial business closures, putting them at risk of unemployment if businesses do not return to normal operations. However, if the economic situation improves, the number of unemployed individuals in this group may decrease; conversely, if the economy does not improve and businesses must close, this group will face a higher risk of unemployment.
Among those in the system, 420,000 individuals have already been laid off and are utilizing social security benefits under Section 33, bringing the total number of workers at risk of not receiving wages to 2.18 million. Meanwhile, the NESDC previously indicated that there is a risk of 8 million unemployed individuals if COVID-19 is not controlled.
Additionally, the employment status of this group varies with the economic situation; for instance, during lockdowns when markets and shops were closed, there was no work available. However, once lockdowns were lifted, they did not lose their jobs and began to earn income again. There is a need to survey more self-employed individuals and implement measures to support them, such as helping them sell goods and increase their income, whether they are street food vendors, motorcycle taxi drivers, or market sellers.
Economic Situation Management Center Discusses Employment
Mr. Tosaporn stated that the meeting of the Economic Situation Management Center, addressing the impacts of the COVID-19 pandemic, will take place on August 19. Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow and Minister of Finance Arkhom Termpittayapaisith will discuss measures to support employment and access to funding for SMEs.
Ms. Traisuli Traisaranakul, Deputy Spokesperson for the Prime Minister's Office, stated that Prime Minister General Prayuth Chan-o-cha is confident that the Economic Situation Management Center will effectively and swiftly address economic issues arising from COVID-19 without overlapping the work of economic agencies.
The Economic Situation Management Center is a proposal from ministries or business sectors, agreeing that it will facilitate a more streamlined and comprehensive approach to addressing economic problems. On August 19, the center will assess the economic impact trends and consider proposals from ministries and the business sector.
SOURCE : www.bangkokbiznews.com