IT Labor Market

Introduction

Thailand's workforce is recognized as one of the most cost-efficient in the world because of their reputation for being diligent and adaptable to change.¹  This capacity to adjust with change is illustrated by the Government’s effort to integrate modern technology into the governmental institutions and throughout the national school system. Thailand recognizes the need for a skilled workforce that will attract high caliber foreign investment and that will increase its own domestic research and development capabilities.²  This task however, will be a difficult one to overcome in the short term.

Workforce Trends    back to top

The population of Thailand reached 62.1 million in 1999 and with a growth rate of 1.2 to 1.4 percent per year, it is estimated that the population will exceed 70 million by 2010.³  In 1998, the workforce totaled 32 million people and in 1999, this number increased to 32.9 million.  More than 60% of Thailand's labor force is employed in agriculture. Until the onset of the economic crisis in 1997, the manufacturing sector was outstripping agriculture in relative importance. But throughout 1997 and 1998 agriculture has been the only high-performing sector in the economy.⁴   The unemployment rate in 1998 was estimated to be 4.7 percent, with an additional 1.3 million agricultural workers seasonally unemployed.⁵  

An important problem faced by a developing country like Thailand is developing the human resources necessary to create new technology as well as to adopt and adapt imported scientific and technological skills to the country's unique socio-economic environment. Although Thailand has a number of researchers working in various universities, government departments, and private organizations, the number is lower than in other more technologically advanced countries. There are two aspects of human resource development in Thailand which aim to increase the scientific and technological manpower to a more satisfactory level.⁶

The first aspect involves the types of research being conducted in the country. Although many Thai researchers conduct original and basic research to extend the boundary of scientific knowledge, a large number work only on the use of imported technology and equipment. It is obvious that dependence on such technology from abroad without attempting to modify or enhance it will prevent the country from developing its own potential. Several government offices are trying to promote original and basic research by providing financial support to Thai researchers in universities as well as other sectors. It is foreseen that during the last decade of the century this will result in great improvement in the quality of Thai researchers and scientists.⁷

The second aspect concerns changes in the Thai economic structure from agriculture towards industry and changes in the development concept away from increasing production volume towards improving efficiency and quality. These changes require more modern and complex production processes and management. This is especially true of new industrial projects in petrochemicals, fertilizers, electronics, and the like, which require manpower with a nigh level of scientific and technological competence.⁸

Thailand and Education    back to top

One of the reasons that Thailand does not have a high skilled workforce is because its education system is still very much geared towards the needs of a largely agrarian, traditional economy.⁹  However, the Government has made significant changes in the past twenty years and primary enrollment is now about 95 percent. The adult literacy rate is 90%, and considered to be one of the best in the region. Compulsory education is only through grade six and a plan to increase this requirement to grade nine was rejected because of a large resistance from the rural areas.¹⁰  About 4.5 % of the people between the ages of 18 to 24, are attending a private college or university. 

The majority of Thailand's general population has relatively limited English skills and this issue has become a major obstacle for bringing more people into the Information Technology sector because most of this area of business is conducted in English. Also, about 90 percent of all websites are in English. 

To address this problem, the Thai government has begun to target the lowest levels of education and it is currently implementing policies to improve the computer and English language skills of the young children.¹¹

IT and Thai Universities    back to top

The Thailand Government should take responsibility for the development of their domestic workforce in the field of information technology. The most appropriate means of encouraging growth within the research and development sector of information technology, is to strengthen the Universities. Likewise, at the vocational level, the target should focus on the development of  practical skills in manipulating equipment and machines. Vocational school graduates are expected to be a major part of the work force in industry, while university graduates in science and technology are expected to be the developers and implementers in the country.¹²

Due to the high demand for graduates in science and technology, in 1988 the government increased the number of students admitted in major fields such as engineering and technology by five percent. At the same time, the Ministry of University Affairs also permitted several private universities to expand their engineering courses under the strict scrutiny of the Engineering Curriculum Committee to ensure the quality of the graduates.¹³

In the recent past, it was difficult to encourage students to study sciences because Thailand did not have many research institutions and it was thought that science graduates had little option but to become science teachers. Some science graduates found jobs outside their fields and only a few wished to work for the government.¹⁴

In order to attract good students and to encourage graduates in science and technology to work in the government universities and research institutions, the government has launched a project called the Development and Promotion of Science and Technology Talent [DPST]. The main objective of this project is to provide financial support to exceptionally good students, staring from the Bachelor's Degree and going on to advanced degrees.¹⁵

The Thai government strongly supports the areas of science and technology and as a result, most of the Universities have strong computer science and engineering programs.⁹ In 1997, the Ministry of University Affairs initiated a project that would provide public universities and their campuses with a high speed ATM network of 155 Mbps for the urban campuses and 2 Mbps digital leased lines for campuses located in the provincial areas.  This project is expected to extend through 2,004.¹⁶

Brain Drain    back to top

The minimum wage in Thailand is currently 162 Baht per day (US$4.38) in Bangkok, and between 130-140 Baht in the provinces. This low average wage is becoming a major problem for the Thai government in retaining their high skilled workforce. It is often the case that the workers head to the United States to earn higher wages ( up to 2,610 Baht an hour, US$60). It is estimated that the US will need about 150,000 skilled workers in the next two to three years and so the demand for these workers is rising.¹⁷

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