– Thailand’s labour market—particularly among small and medium-sized enterprises (SMEs)—continues to face mounting risks from both domestic and international factors, notably the impact of a new wave of global trade wars.These pressures are disrupting sales and production continuity.

At the same time, Thailand’s production sector has yet to make significant progress in innovation, leaving it unable to meet evolving customer demands across various levels.

This has contributed to declining sales, reduced production output, and falling employment levels, resulting in widespread business closures over the past year and into early 2025.

Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC), stressed that one critical issue in the labour market is the need for innovation and technological adoption to ensure the survival of SMEs.

According to the World Bank’s Thailand Economic Monitor – February 2025, Thai businesses adopt innovation in their operations at a lower rate than regional peers. Only 11.9% of Thai firms incorporate innovation into their production processes, compared to 40.9% in the Philippines, 37.9% in Vietnam, and 37.3% in Malaysia.

The report also highlights Thailand’s relatively low investment in research and development, which poses a structural barrier to business competitiveness.