Thailand’s unemployment rose to about 400,000 people in the second quarter of 2026, even as the overall number of people in work grew. The jobless rate reached 0.95%, according to Thailand’s National Economic and Social Development Council (NESDC).
Total employment rose 5.1% year-on-year to 41.5 million people, driven by agriculture and services during the long holiday season. But officials said the labour market beneath that headline figure showed clear signs of strain.
The number of people who previously had a job before losing it rose by 71,000. Nearly half quit voluntarily, mostly in wholesale, retail and manufacturing.
Workers with a university degree had the highest unemployment rate of any education group, at 1.70%.
Applications for unemployment benefits under the social security system rose to 290,000. Business closures also climbed in the first half of 2026, reaching 7,024, up 12.5% from a year earlier.
The number of underemployed workers, those working fewer hours than they want, rose 8% to 2.2 million. Long-term unemployment, lasting more than a year, climbed to 81,000 people.
Average wages fell 0.25% to 15,937 baht a month, with self-employed workers hit hardest as earnings dropped 1.96% to 16,059 baht. Wages for those in registered jobs rose slightly, up 0.90% to 15,853 baht.
Once inflation, which stood at 2.70% for the quarter, is factored in, real wages fell 2.88%.
Average working hours fell slightly, but the number of people working more than 50 hours a week rose 3.3% to 6.5 million. Officials said workers were taking on extra hours to cover rising living costs.
A new employee welfare fund law is due to take effect on October 1, 2026, under Section 126 of Thailand’s Labour Protection Act. It is designed to give workers a lump sum when they leave a job.
The law will apply to businesses with 10 or more employees that do not already offer a similar benefit, such as a provident fund. It is expected to cover more than 107,000 businesses, or 80.7% of the target group, and about 5.7 million workers.
Employers and employees will each contribute 0.25% of wages to the fund from October 2026 until September 2031. The rate will then double to 0.5% each from October 2031 onward.
Employers who fail to register or submit false information face up to six months in prison, a fine of up to 10,000 baht, or both. Those who miss or underpay contributions face a penalty of 5% a month on the amount owed.
Officials said many workers still do not understand their rights under the new fund. They called for a public awareness campaign before it takes effect in October.
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