Thailand’s construction industry is facing a critical labor shortage that threatens to delay essential infrastructure projects across the country. As of 2023, the sector is short 400,000 workers, a combination of skilled and unskilled labor. This shortage in Thailand Construction Labor Market has already had serious consequences. Projects from 75% of construction companies are seeing delays, especially in vital areas like mass transit line expansion. This growing challenge could stall Thailand’s infrastructure growth and affect economic progress.
Let’s see why and how the labor shortage is affecting the country’s construction sector!
Workforce Situations in Thailand Construction Labor Market
One key factor behind the Thailand Construction Labor Market shortage is the aging workforce. Fewer young people are entering the sector, and a large portion of the existing workers are nearing retirement. To make matters worse, the pandemic’s impact on migration has restricted the labor supply further. 80% of the construction workforce in Thailand is made up of migrant workers from neighboring countries like Myanmar, Laos, and Cambodia. However, post-pandemic border restrictions reduced migrant labor by 30%, significantly increasing the strain on available workers.
Recruitment Challenges and Perception Issues
Another one of the primary issues facing the industry is recruitment. Despite the high demand for workers, the construction sector struggles to attract new talent. According to a 2022 survey by the Thailand Development Research Institute (TDRI), 68% of young Thai job seekers are not interested in working in construction. Many perceive the industry as offering low wages and poor working conditions, which discourages younger workers from pursuing careers in construction. This generational disconnect is further widening the gap in labor supply.
Government Initiatives to Combat Labor Shortages
The Thai government has recognized the severity of this problem and is actively working to address it. A significant part of their strategy is the Skill Development Plan for 2022-2026. This initiative aims to upskill 200,000 construction workers by 2026, focusing on improving productivity, quality, and safety standards in the industry. This long-term effort is expected to increase the overall efficiency of the construction sector. However, its immediate impact on the labor shortage may take time to materialize.
In addition to training initiatives, the government has taken steps to ease the process of hiring migrant labor. In 2022, visa and work permit requirements were relaxed, enabling the legal recruitment of 150,000 additional migrant workers from Myanmar and Cambodia. This move has helped alleviate some of the immediate strain on Thailand Construction Labor Market shortages. But it’s only a temporary fix to a more deep-rooted problem in the labor market.
The Thailand Construction Labor Market is at a crossroads. With a shortfall of 400,000 workers and 75% of projects delayed, the industry faces an urgent need for solutions. The reliance on migrant labor, compounded by post-pandemic restrictions, has exacerbated the problem. The government’s efforts, including the Skill Development Plan and recruitment of 150,000 migrant workers, are critical steps toward resolving the crisis. Without these efforts, Thailand’s construction industry may continue to struggle, delaying key projects and hindering the country’s infrastructure growth.
