BANGKOK – 2025/06/09 03:26:43 – A recent report suggests that new graduates in Thailand may face significant challenges in securing employment. Mr. Danucha Pichayanan, Secretary-General of the National Economic and Social Progress (NESDB), revealed findings indicating a potential rise in graduate unemployment throughout 2025.

The concerns stem from a survey conducted by Hult International Business School and Workplace Intelligence, which found that over 89 percent of executives are hesitant too hire recent graduates. The survey highlights several perceived shortcomings among new graduates:

• Lack of real-world experience (60 percent)
• insufficient skills (51 percent)
• poor teamwork abilities (55 percent)
• Inadequate business etiquette (50 percent)

These concerns are driving employers to seek choice staffing solutions, such as hiring freelancers or retirees, or simply leaving positions vacant. Data from the Thailand Development Research Institute (TDRI) indicates that only 22.3 percent of online job applications express a need for new graduates, reflecting an emphasis on practical skills and experience.

This trend aligns with a rising unemployment rate among young workers and recent graduates with tertiary education, signaling a growing disconnect between academic training and employer needs.

addressing the Skills Gap

“entrepreneurs focus on having real skills and understanding of work.”

To mitigate these challenges, Mr. Pichayanan emphasized the need for new graduates to cultivate relevant skills and a strong work ethic. He also urged educational institutions to adapt their curricula to better align with market demands and to promote internship programs that provide students with valuable real-world experience.

The report also highlighted broader economic trends affecting employment. While the agricultural sector experienced a decline in employment, other sectors showed slight growth. However, the survival of small and medium-sized enterprises (SMEs) remains a concern, especially regarding the adoption of technology and innovation. This situation further exacerbates the unemployment risk for new graduates and underscores the need for workforce retraining initiatives.

Labor Market Overview

In the frist quarter of 2025, the total number of employed individuals was 39.4 million, a decrease of 0.5 percent from the first quarter of 2024. Employment in the agricultural sector continued to decline, falling by 3.1 percent, while non-agricultural sectors saw a slight improvement of 0.5 percent. The hotel and restaurant sector experienced growth of 3.5 percent, despite a decrease in tourist arrivals. Transportation and storage also expanded, growing by 4.5 percent, while manufacturing contracted slightly by 0.4 percent.

the average work week decreased to 40.8 hours, with the private sector averaging 44.0 hours. The rate of overtime work was 5.0 percent,while employment among low-skilled workers decreased by 7.9 percent. The unemployment rate fell to 0.88 percent, down from 1.01 percent in the first quarter of 2024,with approximately 360,000 unemployed individuals holding a high school diploma or lower.

Long-term unemployment decreased by 14.3 percent, or 6,800 people. Among the unemployed, 74.3 percent had never previously held a job, and the primary reason for unemployment was the inability to find suitable work. However, over 4.3 million individuals remained underemployed, a 14.6 percent increase from the previous year.