In an eye-opening report delivered by a reputable agency, there’s rising concern about recent university graduates possibly joining the workforce on a diminished salary scale, or even witnessing jobs being awarded to their lesser-qualified peers.
The report drew attention to a worrisome discrepancy plaguing the Thai labour market. Despite demonstrating a noticeable employment uptick post the havoc unleashed by the pandemic, the current job scenario does not mirror the qualification requirements of its job seekers.
To substantiate the presented argument, the report brought forward relevant data from the Board of Investment (BOI). This evidence showed a constriction in the demand curve for individuals with a university degree in 2022, a stark contrast to the scene unfolding in 2018.
The BOI stats presented an interesting comparison. In 2018, the business sector absorbed 95,566 employees. This number climbed to a whopping 168,992 in 2022. A deeper examination reveals an intriguing paradox. Despite the workforce expansion, the job allocation to university graduates sharply fell from a healthy 30.1% coverage to a mere 17.2% in 2022.
A parallel study showcased a minor dip in job allotments for those concluding vocational school journeys, dropping from 23.7% in 2018 to 22.5% in 2022. Building upon this, secondary school graduates witnessed a surge in job opportunities, with the ratio escalating from 41.1% in 2018 to 57.3% in 2022.
The report emphasized that companies profiting from BOI privileges and operating within the Eastern Economic Corridor (EEC) displayed a trend of hiring individuals with less advanced education. Statistical evidence from the report mentioned that out of the 419 projects undertaken in the EEC, a workforce of 52,322 individuals was employed in 2022, boasting the following breakdown based on education:
- 59.1% were secondary school graduates.
- 25.2% were vocational school finishers.
- 14.7% were university degree holders.
The report underlined a prominent trend with more job openings for secondary-educated individuals, notably within the auto and auto parts, alongside the electric appliances and electronic industries. An interesting tidbit about the worker to industry ratio based on education enlists:
- Secondary school: Auto (63.9%), electrical appliances and electronics (63.2%).
- Vocational school: Auto (22.5%), electrical appliances and electronics (23.6%).
- University: Auto (13.5%), electrical appliances and electronics (12.9%).
Interestingly, the report highlights sectors such as digital, agriculture, and food-processing as the torchbearers for embracing university graduates.
The report shed light on the likelihood of an increase in unemployed university graduates due to the high enrolment numbers, with the 2021 figures recorded at 1.902 million students for higher education, as opposed to 374,962 vocational school students.
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