By Akadet Chaichanavichakit (Waseda University, Graduate School of Asia Pacific Studies)

Over the past 50 years, immigration has become a strong force throughout the world. Economic opportunity is among one of the most important factors expediting migrant’s decision to move. The destination countries, which in general have relatively higher level of economic development, usually share the same characteristics of intense labor demands, aging population, and declining birth rate. Therefore, migrant workers have become an important, or even integral, part to their economies. Thailand, as one of the economic leader in Southeast Asia, also attracts a large number of migrant workers for its export-driven economy. Migrant workers from Myanmar, Cambodia, and Laos have been filling the demand of low cost and low-skilled workforce in labor-intensive manufacturing industries. Consequently, Thai industries have depended heavily on migrant workers from its three neighboring countries. However, as ASEAN Economic Community [AEC] is taking its full effect and as Myanmar is implementing its political and economic reformations, experts predict dramatically depleting number of migrant workers from these three countries to Thailand. This research attempts to study the level of dependency on low-skilled migrant worker in Thai manufacturing sector by thoroughly examining relevant statistical data. The findings show that construction industry employs the highest number of migrant workers, at 236,346, followed by agroprocessing and seafood processing industries. However, seafood processing industry has the highest level of relative dependency, at 72.40 percent, followed by stone processing and livestock processing industries. The results suggest urgent preparation for both public and private sectors related to industries with high level of low-skilled migrant worker dependency.

Source: SSRN