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1 THAILAND 40,000 Fig. 1: Employment by Major Economic Activity ('000s), Agriculture, Forestry, Agriculture, Forestry & 35,000 30,000 25,000 20,000 15,000 10,000 5, Mining and Quarrying Electricity, Gas and Water Supply Wholesale and Retail Trade Hotels and Restaurants Transport, Storage, Communications Business Services Public Administration, Defence Health and Social Work Social and Personal Services Other Services and Not Classifiable Source: ILO Laborsta; Persons aged 15 years and over. Excl. armed forces. Third quarter. 5,000,000 Fig. 2:Sectoral Value Added (Million Bhat, Constant Prices) 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Source: Bank of Thailand. Private Households Com., Soc. & Pers. Serv. Health Public Admin. Real Est. & Bus. Activities Fin. Int. Trans., Stor. & Com. Hotels & Rest. Wholesale & Retail Elec., Gas & Water Mining & Quarrying Agr., Hun. & For. The agriculture sector in Thailand, including forestry and fishing, was the largest employer in 2008, accounting for 41.3 per cent of total employment (see Figs. 1 & 3). Employment in this sector, at 16.1 million workers in 2008, has increased from 15.8 million workers in There was a sharp decline in employment between 2002 and 2004, followed by a period of fluctuating growth and decline in the sector. Since 2005 however, employment has grown steadily. The agriculture sector in Thailand has consistently accounted for about 8 per cent of total Gross Domestic Product, in value added terms since 2000, with a peak in 2003 of 8.9 per cent value added (see Fig. 2). Major agricultural crops in Thailand include sugar cane, rice (paddy), cassava, maize, rubber, and pineapple. Production levels in 2007 reached 64.4 billion tons of sugarcane, 32.1 billion tons of rice (paddy) and 26.9 billion tons of cassava. Agricultural products constituted nearly 18 per cent of merchandise exports from Thailand in In addition to crop production, nearly 35 per cent all agricultural holdings are engaged in the additional cultivation of live stock. Foreign Direct investment in agriculture reached 6.5 million USD in 2009, down from a peak of 28 million USD in The majority of foreign-led agricultural production occurred on large estates; however, the majority of agricultural production in Thailand is still carried out by smallholder farmers, often on family farms. Agricultural workers in Thailand worked an average of 41.6 hours per week in 2003, below the national average of 48.9 hours per week for the Thai economy as a whole. This average is the lowest for all major economic activities except Fig. 3: Employment in Agriculture, Forestry, education. In contrast, workers engaged in & ('000s), fishing worked an average of 61.7 hours per 16,200 week in 2003, far above the national average and more than in any other major economic 16,000 activity. Agricultural workers are the lowest paid of any major economic activity in Thailand. Average monthly earnings of 3,284.3 baht per month were reported for 2007, compared to the national average of 7,357.4 baht per month reported for that year. Agriculture workers wages have been increasing most rapidly, however, growing at a compound average rate of 7.1 per cent per year between 2001 and 2007, compared with the national average growth rate of 4.7 per cent per year over the same period. 15,800 15,600 15,400 15,200 15,000 14,800 14, Source: ILO Laborsta; Persons aged 15 years and over. Excl. armed forces. Third quarter. Sectoral Activities Department

2 THAILAND 5,800 5,600 5,400 5,200 5,000 4,800 4,600 4,400 4,200 Wholesale & Retail Trade Fig. 4: Employment in Wholesale & Retail Trade ('000s), Source: ILO Laborsta; Persons aged 15 years and over. Excl. armed forces. Third quarter. rising faster than in the country as a whole, which experienced an average annual growth rate of 1.7 per cent over the same period (see Fig. 4). In terms of international merchandise trade (much of it carried out by wholesale merchants), Thai exports reached billion USD in 2008, while imports reached billion USD over the same time period. The majority of Thailand s exports were manufactured products (71.5 per cent), though agricultural products comprised nearly 18 per cent of exported goods in Major export products include computer equipment, electronic valves, diodes and transistors, heavy petroleum, rubber and rice. Thailand s top export partners include the European Union, the United States, Japan and China. In 2008, the largest concentration of enterprises operating in Thailand was within the retail trade subsector, with 40.8 per cent of all establishments, or more than 772,000 businesses operating in the subsector. The wholesale trade subsector was much smaller in Thailand, with just 4.6 per cent of all enterprises operating in the subsector. The majority of wholesale and retail establishments in the country are small-scale establishments, employing less than 15 persons. Establishments engaged in retail sales had the highest value added in 2007, of nearly 500 billion THB. Wholesale establishments also had a high value added with more than billion THB in FDI flows in wholesale and retail trade were 236 million USD in 2009, down from a peak of more than 1.1 billion USD in FDI flows came primarily from Japan, Singapore, Hong Kong, and the European Union, with major contributions from Germany and Belgium. Average wages in the sector were just above the national average in 2007, at 7,456 baht per month, versus 7,357 baht per month respectively. However, wholesale and retail trade sector wages have not grown as fast as wages in other sectors on average. The rates of growth were 4.7 per cent per year for the nation as a whole, and 2.1 per cent per year for the wholesale and retail trade sector. Working time has also been slightly above average, at 50.4 hours per week on average in wholesale and retail trade, compared to 48.9 hours per week on average for all major economic activities taken as a whole. However, these estimates are for Sectoral Activities Department In Thailand, the wholesale and retail trade sector (commerce) contributed 14 per cent of total GDP in value added terms, and accounted for nearly 15 per cent of total employment in 2008 (see Figs. 1 & 2). The sector is the country s second largest employer, after the agriculture, forestry and fishing sector, with 5.6 million jobs in This marks an increase of 900,000 jobs over the 2002 level, showing an average growth rate of 2.9 per cent per year. Employment growth in this sector has been Key Labour Market Indicators (2009) Economically Active Population: Total: 38,278,645 Men: 20,807,588 Women: 17,471,065 Labour Force Participation Rate: Total: 72.5% Men: 81.1% Women: 64.4% Unemployment Rate: Total: 1.5% 5,700 5,600 5,500 5,400 5,300 5,200 5,100 5,000 4,900 4,800 4,700 The manufacturing sector in Thailand employed 5.2 million workers in 2008, making it the third largest employer sector, accounting for 13.8 per cent of total employment by economic activity (see Fig.1). Employment in manufacturing has grown slowly, at an average annual rate of 0.6 percent, compared to 1.7 per cent nationally. In 2002, employment in manufacturing was 5.0 million workers and it peaked in 2007 at about 5.6 million, before declining to 5.2.million workers in 2008 (see Fig. 5). The manufacturing sector s contribution to Thailand s gross domestic product in value added terms has been significant; accounting for 40 per cent of the total in 2008.The share of manufacturing has increased since 2000 when it accounted for nearly 36 per cent of value added GDP (see Fig. 2). The 2007 Industrial Census counted 457,968 manufacturing establishments overall, with the majority of establishments concentrated in food and beverage manufacturing (25.3 %), apparel manufacturing (18.1%) and textile manufacturing (17.9%). The majority of establishments surveyed were small scale establishments, with 94.3% of firms employing less than 15 workers. Large scale establishments employing more than 200 people represent less than 1 per cent of all manufacturing enterprises. Flows of foreign investment to the manufacturing industry were 3.7 billion USD in 2009, down from a peak of 4.6 billion the previous year. The majority of FDI was directed to the electrical appliances and transportation manufacturing subsectors, with flows of 1.2 billion USD and 1.4 billion USD respectively in The largest share of foreign investment in Thailand came from companies headquartered in Japan, Singapore, Hong Kong and the European Union. Foreign direct investment was concentrated in the apparel and textiles manufacturing subsector, the electrical machinery subsector, the transportation manufacturing subsector and in the food, beverage and tobacco manufacturing subsectors. In terms of working conditions, workers in Thailand averaged 48.9 hours per week on the job in In manufacturing, the average was slightly higher, at 50.5 hours per week. Wages in manufacturing, which averaged 6,999 baht per month in 2007, up from 6,065 baht per month in 2001, were below the 7,357 baht per month average for all major economic activities in Employees in the tobacco products manufacturing industry, the coke and refined petroleum products manufacturing industry and those engaged in the production of motor vehicles and transportation equipment received higher levels of remuneration, than other workers in other manufacturing subsectors. Fig. 5: Employment in ('000s), Source: ILO Laborsta; Persons aged 15 years and over. Excl. armed forces. Third quarter. Other Sources: The Bank of Thailand; National Statistical Office of Thailand; UNCTAD.

3 Thailand Table 1: GDP Value Added by Industry (Millions of Bhat, Constant Prices) & % Share in Total Value Added Total GDP Value Added 3,008, ,073, ,237, ,468, ,688, ,858, ,054, ,259, ,364, ,263, % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Agr., Hun. & For. 259, , , , , , , , , , % 8.8% 8.4% 8.9% 8.1% 7.5% 7.4% 7.2% 7.3% 7.6% 50, , , , , , , , , , % 1.6% 1.5% 1.6% 1.6% 1.5% 1.6% 1.5% 1.5% 1.6% Mining & Quarrying 64, , , , , , , , , , % 2.1% 2.2% 2.2% 2.2% 2.3% 2.3% 2.2% 2.2% 2.3% 1,096, ,111, ,190, ,318, ,426, ,499, ,588, ,686, ,751, ,645, % 36.2% 36.8% 38.0% 38.7% 38.9% 39.2% 39.6% 40.1% 38.6% Elec., Gas & Water 97, , , , , , , , , , % 3.4% 3.4% 3.3% 3.3% 3.3% 3.3% 3.3% 3.4% 3.5% 76, , , , , , , , , , % 2.5% 2.5% 2.4% 2.4% 2.4% 2.4% 2.4% 2.2% 2.2% Wholesale & Retail 474, , , , , , , , , , % 15.3% 14.8% 14.2% 14.0% 14.0% 13.8% 13.9% 13.7% 14.0% Hotels & Rest. 113, , , , , , , , , , % 3.9% 3.8% 3.4% 3.6% 3.5% 3.7% 3.7% 3.7% 3.8% Trans., Stor. & Com. 290, , , , , , , , , , % 10.1% 10.2% 9.8% 9.9% 10.0% 10.1% 10.1% 9.8% 9.7% Fin. Int. 84, , , , , , , , , , % 3.2% 3.4% 3.5% 3.5% 3.5% 3.7% 3.9% Real Est. & Bus. Activities 120, , , , , , , , , , % 4.0% 4.0% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 4.0% Public Admin. 95, , , , , , , , , , % 3.2% 3.3% 3.1% 3.0% 3.0% 2.9% 83, , , , , , , , , , % 2.5% 2.4% 2.5% 2.5% 2.6% 2.5% 2.7% Health 41, , , , , , , , , , % 1.4% 1.4% 1.2% 1.2% 1.3% 1.3% 1.3% 1.2% 1.3% Com., Soc. & Pers. Serv. 57, , , , , , , , , , % 1.9% 2.0% 2.1% 2.2% 2.2% 2.2% 2.0% 1.9% 2.0% Private Households 3, , , , , , , , , , % 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Source: Bank of Thailand. Notes: Sectors are classified according to the national classification of industrial sectors as reported by the national source. Sum of individual sectors may not equal total due to rounding and other adjustments introduced by the national source. 1

4 Public Admin. 3.2% Real Est. & Bus. Activities 4.0% Fin. Int. Trans., Stor. & Com. 9.7% Share in Sectoral Value Added, 2000 Health 1.4% Com., Soc. & Pers. Serv. 1.9% Private Households 0.1% Agr., Hun. & For. 8.6% 1.7% Mining & Quarrying 2.1% 2.5% Public Admin. Real Est. & Bus. Activities 3.9% Fin. Int. 3.7% Trans., Stor. & Com. 9.8% Share in Sectoral Value Added, 2008 Health 1.2% Com., Soc. & Pers. Serv. 1.9% Private Households 0.1% 1.5% Agr., Hun. & For. 7.3% Mining & Quarrying 2.2% Hotels & Rest. 3.8% Wholesale & Retail 15.8% 36.4% Hotels & Rest. 3.7% Wholesale & Retail 13.7% 40.1% Source: Bank of Thailand 2.5% Elec., Gas & Water 3.2% Source: Bank of Thailand 2.2% Elec., Gas & Water 3.4% 2

5 Table 2: World Merchandise Exports (Thousand USD, Current Prices) Total All Products 68,818, ,919, ,107, ,323, ,247, ,110, ,580, ,571, ,907, ,497,202.6 All Food Items 9,924, ,017, ,940, ,319, ,447, ,820, ,683, ,715, ,292, ,138,824.5 Food 9,751, ,846, ,764, ,118, ,218, ,566, ,388, ,339, ,796, ,615,477.4 Beverages & Tobacco 172, , , , , , , , , ,347.1 Agricultural Raw Materials 2,296, ,037, ,515, ,761, ,624, ,995, ,868, ,269, ,369, ,865,111.5 Ores, Metals, Precious Stones & Non-Monetary Gold 1,415, ,294, ,607, ,906, ,127, ,609, ,702, ,720, ,407, ,586,304.4 Ores & Metals 795, , , , ,106, ,368, ,964, ,735, ,285, ,623,161.3 Fuels 2,206, ,809, ,819, ,126, ,414, ,767, ,506, ,840, ,299, ,788,252.6 Coal, Coke, & Briquettes , , ,775.0 Petroleum, Petroleum Products & Related Materials 1,932, ,620, ,644, ,895, ,100, ,358, ,180, ,636, ,192, ,697,691.9 Gas, Natural & Manufactured 273, , , , , , , , , ,927.3 Electric Current : : : : : 8, , , , ,858.5 Manufactured Goods 51,082, ,574, ,196, ,407, ,109, ,342, ,154, ,004, ,537, ,117,795.3 Chemicals 4,078, ,717, ,166, ,257, ,909, ,912, ,440, ,153, ,777, ,438,310.1 Machinery & Transport Equipment 29,996, ,291, ,910, ,190, ,776, ,192, ,371, ,812, ,341, ,914,807.2 Iron & Steel 898, , , ,035, ,532, ,643, ,842, ,835, ,868, ,515,316.5 Textile Fibres, Yarn, Fabrics & Clothing 5,983, ,703, ,640, ,111, ,010, ,333, ,607, ,730, ,965, ,270,419.5 Other Manufactured Goods 17,007, ,564, ,119, ,959, ,424, ,237, ,343, ,038, ,418, ,764,678.0 Source: UNCTADStat. Data presented according to SITC Rev.3 and standard UNCTAD product groupings. 3

6 Table 3: World Merchandise Imports (Thousand USD, Current Prices) Total All Products 61,921, ,960, ,645, ,824, ,402, ,164, ,584, ,761, ,613, ,769,638.8 All Food Items 2,676, ,061, ,216, ,708, ,190, ,699, ,972, ,937, ,478, ,098,599.0 Food 2,450, ,844, ,995, ,471, ,914, ,405, ,657, ,635, ,107, ,790,351.5 Beverages & Tobacco 226, , , , , , , , , ,247.5 Agricultural Raw Materials 1,807, ,736, ,759, ,011, ,209, ,420, ,375, ,543, ,189, ,265,429.8 Ores, Metals, Precious Stones & Non-Monetary Gold 3,402, ,619, ,795, ,348, ,493, ,093, ,882, ,056, ,200, ,268,661.8 Ores & Metals 1,888, ,936, ,982, ,530, ,015, ,624, ,475, ,725, ,139, ,418,915.8 Fuels 7,548, ,473, ,478, ,029, ,206, ,942, ,622, ,895, ,209, ,877,710.9 Coal, Coke, & Briquettes 125, , , , , , , , ,095, ,069,176.6 Petroleum, Petroleum Products & Related Materials 7,313, ,654, ,560, ,093, ,820, ,971, ,864, ,815, ,417, ,678,908.1 Gas, Natural & Manufactured 109, , , , ,080, ,493, ,019, ,071, ,532, ,029,937.5 Electric Current : : : : , , , , ,688.7 Manufactured Goods 46,044, ,592, ,851, ,886, ,393, ,625, ,458, ,317, ,533, ,256,781.0 Chemicals 6,821, ,660, ,217, ,476, ,594, ,006, ,188, ,349, ,607, ,351,925.6 Machinery & Transport Equipment 27,868, ,022, ,532, ,963, ,404, ,944, ,784, ,737, ,775, ,746,654.4 Iron & Steel 2,781, ,579, ,238, ,083, ,318, ,708, ,880, ,461, ,601, ,478,194.4 Textile Fibres, Yarn, Fabrics & Clothing 2,389, ,315, ,329, ,481, ,794, ,005, ,079, ,220, ,815, ,968,888.0 Other Manufactured Goods 11,354, ,910, ,101, ,446, ,394, ,675, ,484, ,229, ,151, ,158,200.9 Source: UNCTADStat. Data presented according to SITC Rev.3 and standard UNCTAD product groupings. 4

7 Table 4: Employment by Major Economic Activity (thousands) & % Share in Total Employment Total Economy 34, , , , , , , % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Agriculture, Hunting and Forestry 15, , , , , , , % 43.7% 41.2% 41.3% 41.0% 40.6% 41.3% % 1.2% 1.1% 1.2% 1.2% 1.1% 1.1% Mining and Quarrying % 0.1% 0.1% 0.1% 0.2% 0.1% 0.1% 5, , , , , , , % 14.7% 14.9% 14.7% 14.6% 15.1% 13.8% Electricity, Gas and Water Supply % 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 1, , , , , , , % 4.7% 5.3% 5.1% 5.6% 5.2% 5.3% Wholesale and Retail Trade 4, , , , , , , % 14.6% 15.3% 14.6% 14.9% 14.9% 14.9% Hotels and Restaurants 1, , , , , , , % 6.1% 6.2% 6.3% 6.1% 6.2% 6.2% Transport, Storage, Communications , , , , , % 3.0% 2.9% 2.9% Financial Intermediation % 0.8% 0.8% 0.9% 1.0% 0.9% 1.0% Real Estate, Rental, Business Services % 1.6% 1.8% 1.8% 1.8% 1.9% 1.9% Public Administration, Defence , , , , , % 3.0% 3.2% 3.5% 3.4% , , , , , % 3.1% 3.0% 2.9% 2.9% Health and Social Work % 1.5% 1.5% 1.7% 1.7% 1.7% 1.9% Social and Personal Services % 1.8% 2.0% 2.0% 2.0% 1.9% 2.2% Private Households Employment % 0.7% 0.7% 0.7% 0.6% 0.6% 0.5% Extra-Territorial Organizations % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Not classifiable by economic activity % 0.1% 0.1% 0.1% 0.2% 0.1% 0.1% Persons aged 15 years and over. Excl. armed forces. Third quarter. Sectors are classified according to ISIC Rev.3, as reported in ILO Laborsta. Sum of individual sectors may not equal total due to rounding. Total employment is comprised of all persons above a specific age who during a specified brief period were either in paid employment at work, with a job but not at work, or self-employed. This category covers not only employees (wage earners and salaried employees), but also employers, own-account workers, members of producers cooperatives, contributing family workers and workers not classifiable by status. Data are non-seasonally adjusted. Source: ILO Laborsta. 5

8 Public Admin. & Defence Real Estate & Bus. Serv. 1.5% Financial Int. 0.8% Share of Employment by Sector, 2002 Health & Social Social & Work Pers.Serv. 1.4% Trans., Stor., & Com. Hotels & Restaurants 5.8% Wholesale & Retail Trade 13.8% 4.7% Elec., Gas & Water Supply 0.3% 14.7% Source: ILO Extra-Ter. 1.8% Orgs.0.0% Priv. Households 0.6% Mining & Quarrying 0.1% Not Classifiable 0.0% 1.4% Agr., Hunting & Forestry 44.7% Health & Social Work 1.9% 2.9% Public Admin. & Defence 3.4% Real Estate & Bus. Serv. 1.9% Financial Int. 1.0% Trans., Stor., & Com. 2.9% Hotels & Restaurants 6.2% Share of Employment by Sector, 2008 Wholesale & Retail Trade 14.9% 5.3% Elec., Gas & Water Supply 0.3% Source: ILO Social & Pers. Serv. 2.2% 13.8% Extra-Ter. Orgs. 0.0% Priv. Households 0.5% Not Classifiable 0.1% 1.1% Mining & Quarrying 0.1% Agr., Hunting & Forestry 41.3% Table 5: Average Actual Weekly Working Hours by Major Economic Activity Total Economy Agriculture, Hunting and Forestry Mining and Quarrying Electricity, Gas and Water Supply Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods Hotels and Restaurants Transport, Storage and Communications Financial Intermediation Real Estate, Renting and Business Activities Health and Social Work Other Community, Social and Personal Service Activities Households with Employed Persons Extra-Territorial Organizations and Bodies 47.2 : : Not Classifiable by Economic Activity 61.1 : : Persons aged 15 years and over. Excl. armed forces. Third quarter. Sectors are classified according to ISIC Rev.3, as reported in ILO Laborsta. Data are non-seasonally adjusted. Source: ILO Laborsta. 6

9 Table 6: Average Monthly Earnings by Major Economic Activity (Thai Bhat) Total Economy 5, , ,839.6 : : 7, ,357.4 Agriculture, Hunting and Forestry 2, , ,345.5 : : 3, , , , ,492.4 : : 5, ,258.0 Mining and Quarrying 10, , , , , , , , , , , , , ,999.2 Electricity, Gas and Water Supply 12, , , , , , , , , , , , , ,477.8 Wholesale and Retail Trade 6, , , , , , ,455.6 Hotels and Restaurants 5, , , , , , ,011.1 Transport, Storage and Communications 8, , , , , , ,745.9 Financial Intermediation 16, , , , , , ,364.0 Real Estate, Renting and Business Activities 8, , , , , , ,792.6 Public Administration and Defence : : : 20, , , , , , , , , , ,531.8 Health and Social Work 9, , , , , , ,177.9 Other Community, Social and Personal Service Activities 6, , , , , , ,825.6 Households with Employed Persons 3, , , , , , ,903.1 Extra-Territorial Organizations and Bodies : : : 20, , , ,664.2 Not classifiable by economic activity : : : 11, , , ,087.3 Persons aged 15 years and over. Excl. armed forces. Third quarter. Sectors are classified according to ISIC Rev.3, as reported in ILO Laborsta. Data are non-seasonally adjusted. Source: ILO Laborsta. 7

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