Bangkok: Thais are increasingly at risk of falling into debt due to a penchant for luxury spending, while students pursuing bachelor’s degrees face the threat of unemployment. The National Economic and Social Development Board (NESDB) has highlighted these concerns as part of its analysis of the Thai society’s state in the first quarter of 2015.
According to Thai News Agency, the NESDB’s report reveals that the unemployment rate has remained steady at 0.88%, despite a 0.5% decrease in employment figures. The data also shows a concerning rise in household debt by 0.2%, alongside a significant increase of 64.1% in diseases under surveillance. The report indicates that 1 in 3 Thais are inclined to spend on luxury goods, which poses a risk of escalating debt levels.
Mr. Danucha Pichayanan, Secretary-General of the NESDB, stated that employment in the agricultural sector continues to decline, with non-agricultural sectors such as hotels and restaurants seeing slight growth. However, the manufacturing sector has experienced a minor contraction of 0.4%. The evolving job market presents challenges for new graduates, particularly those with higher education, as their unemployment rate stands at 1.84%, the highest among all education levels.
A survey conducted by Hult International Business School and Workplace Intelligence in the United States suggests that over 89% of HR executives are reluctant to hire new graduates, citing a lack of real-world experience, inadequate skills, and poor teamwork abilities. Thai entrepreneurs share similar concerns, emphasizing the need for practical skills and real-world understanding among job applicants.
In terms of household debt, it reached 16.42 trillion baht in the fourth quarter of 2024, with a slowed expansion rate of 0.2%. The NESDB highlights that luxury consumption behavior among Thais, such as spending on premium services and products, contributes significantly to this debt risk. Mahidol University’s research indicates that 1 in 3 Thais indulge in luxury items to project a positive social image, leading to potential financial instability, especially during economic downturns.
The report underscores the importance of financial education and planning, as half of the population lacks sufficient emergency savings. This situation is exacerbated by strict lending practices from commercial banks, causing the household debt-to-GDP ratio to decrease slightly. The NESDB calls for urgent adjustments in the education sector to align with market demands, recommending increased focus on internships and skill development to better prepare students for the workforce.