Bangkok (VNA) - Thailand reported 414,000 unemployed people in the third quarter this year, up from 401,000 year-on-year, according to the National Economic and Social Development Council (NESDC).

Factory closures in the second half of the year may exacerbate the situation, following 667 closures and the loss of 17,674 jobs in the first half, the council said.

Chairman of the Federation of Thai Industries (FTI) Kriengkrai Thiennukul noted that lower employment in the manufacturing sector, notably the automotive industry, is a problem for workers and employers as businesses struggle to survive tough competition and a sluggish market.

He said workforces in many industries will continue to shrink as local manufacturers cannot compete with Chinese rivals who are gaining an upper hand by exporting cheap products to Thailand.

The influx of cheap imports in the Thai market was a factor dealing a heavy blow to local manufacturers, leading to a drop in the Manufacturing Production Index (MPI), said the Office of Industrial Economics.

In October, the MPI continued to decline, falling by 0.91% year-on-year to 93.4 points, with the country's capacity utilisation reaching only 57.7%.

With intensifying competition and high household debt in Thailand weakening consumer purchasing power, many companies need to adjust their employment strategies, said Kriengkrai.

The FTI expects employment in factories will continue to dip, with more layoffs of employees or even plant closures.

According to NESDC's report on social conditions in the third quarter, the number of employed people totalled 40 million, down 0.1% year-on-year, attributed to a decline in agricultural employment by 3.4%.

Employment in non-agricultural jobs increased by 1.4% in the third quarter.

Sectors with reduced employment included wholesale and retail sales, which dipped by 0.8%, and the manufacturing sector, particularly computer and electronics production, automotive, trailers and semi-trailers, falling by 1%.

Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, said the chamber views the global economic slowdown and volatility as posing a significant challenge to business operators.

🔥 He said businesses are adjusting their operations to align with the evolving market demand, resulting in restructuring of many companies and layoffs, particularly in the technology, automotive, banking and media sectors./.