This buzzing swarm of workers, however, is facing an impending transformation. Two powerful forces – a declining birth rate and the relentless march of digitalisation – are converging to reshape Thailand’s workforce landscape dramatically.
The current birth rate for Thailand in 2024 is 9.399 births per 1,000 people, a 1.4% decline from 2023. The recent NIDA Poll, revealing that 44% of young Thais don’t want children, serves as a stark warning. The reasons behind this trend – financial concerns, the perceived burden of childcare and the desire for personal freedom – indicate a generational shift in values and aspirations. Fewer young people entering the workforce means a shrinking pool of labour, a trend that will soon ripple across industries.
Adding to this demographic shift is the digital revolution. A visit to any government office reveals the vulnerability of the public sector to automation. Employees grapple with mountains of paperwork, tasks easily handled by AI. This technological advancement, while promising efficiency gains, threatens to displace workers whose roles primarily involve routine tasks.
Even in Phuket, where tourism is the economic lifeblood, the digital wave is making its mark. Online platforms and AI-powered customer service are transforming the industry, potentially reducing the need for low-skilled labor. This poses a unique challenge for the island, where employment opportunities outside tourism are limited.
To navigate this evolving landscape, Thailand must invest heavily in upskilling and reskilling its workforce. In Phuket, this means preparing workers for a future where tourism jobs may require digital proficiency or entirely new skill sets. Programs focusing on tech skills, entrepreneurship, and vocational training are essential to ensure that workers are not left behind.
The government, too, must adapt. Embracing digital transformation in the public sector can streamline processes, reduce costs and free up workers to focus on more hands-on and complex tasks. Furthermore, proactive workforce planning, including retraining existing employees, is crucial to mitigate the impact of automation.
The confluence of a declining birth rate and rapid digitalisation presents a unique challenge for Thailand. The swarm of workers, once abundant and seemingly static, is on the cusp of a profound transformation. However, this challenge also presents an opportunity. By investing in education, embracing technology and adapting to the changing needs of its people.
The image of the swarm may be apt in another way. Like bees adjusting their roles within the hive to ensure its survival, Thailand’s workforce must also be adaptable and flexible, ready to embrace new roles and responsibilities as the landscape evolves. By doing so, the Thai workforce can ensure it remains a productive and prosperous swarm for generations to come.
Simon Causton is a long-time Phuket resident, founder of Citadel Phuket and author of ‘The Phuket Periodical’ newsletter. X (Twitter): @SimonCauston