กกร. เตือนขาดแคลนแรงงานกระทบเศรษฐกิจ เร่งรัฐบาลปลดล็อกโดยเร็วThe Joint Private Sector Committee Warns of Labor Shortages Impacting the Economy, Urges Government to Lift Restrictions Quickly

On May 22, 2026, Mr. Wiboon Supakharphongkul, Vice Chairman of the Thai Chamber of Commerce and Chairman of the Labor and Skill Development Committee, stated that the evolving global economic situation, exacerbated by the conflict between Iran and Israel, is increasingly impacting Thailand both directly and indirectly across economic and social dimensions, particularly in the export, agriculture, tourism, and energy cost sectors. The Joint Private Sector Committee of Three Institutions (JCC) predicts that Thai exports will face challenges due to rising logistics costs, including shipping rates and war risk insurance. Meanwhile, the tourism sector may suffer losses from Middle Eastern tourists, who are typically a high-spending demographic. Overall, it is estimated that this conflict could potentially reduce Thailand's GDP by up to 0.1 - 0.8% depending on the severity of the situation. Although Thailand is not at the center of the conflict, the soaring energy prices and trade costs pose a 'time bomb' for the economy that both the government and private sector need to address urgently to maintain economic stability during this crisis.

However, this crisis could also present an “opportunity” for Thailand, particularly in terms of exports, as some markets may face product shortages. The key factor is the integration and selection of transportation routes, whether through Saudi Arabia or across Africa to reach the Middle East. This needs careful consideration. In tourism, the unrest in the Middle East may lead European tourists, especially from Scandinavia who previously traveled to the Middle East, to shift their destinations to Asia, ASEAN, and Thailand more frequently. Moreover, investors or affluent individuals from the Middle East may seek secure areas for residence or investment, with Thailand boasting potential, particularly as a health and wellness tourism hub.

From the above, it is clear that Thailand still has opportunities stemming from this situation, but the private sector is facing significant challenges and growing concerns, particularly regarding the “labor shortage issue.” Thailand is currently experiencing labor structure challenges resulting in a continuous structural labor shortage across all business sectors. At the same time, Thailand's birth rate has significantly declined, leading to a clear contraction of the workforce in the country. Coupled with restrictions on the import of foreign labor, the situation of labor shortages is escalating across various skill levels, including unskilled, semi-skilled, and skilled labor.

Mr. Wiboon further mentioned that numerous business operators have submitted complaints to the Joint Private Sector Committee of Three Institutions (JCC), including associations such as the Thai Construction Industry Association under Royal Patronage, the Housing Business Association, the Thai Concrete Products Industry Association, the Thai Condominium Association, the Thai Paint Manufacturers Association, the Thai Electrical and Mechanical Contractors Association, the Thai Hotels Association, the Thai Fresh Market Association, the Thai Prepared Food Manufacturers Association, the Thai Frozen Food Association, the Thai Tuna Industry Association, the Thai Pet Food Trade Association, the Thai Shrimp Association, the Thai Rice Exporters Association, the Thai Fruits and Vegetables Producers Association, the Thai Future Food Trade Association, the Thai Rubber Association, the Thai Latex Association, the Thai Coffee Association, the Thai Chicken Exporters Association, the Thai Logistics Business Association, the Thai Port Operators Association, the Thai Shipbuilding and Repair Association, the Thai Garment Industry Association, the Thai Textile Industry Association, the Thai Fuel Retailers Trade Association, and the members of provincial chambers of commerce and provincial industrial councils in the eastern region including Chanthaburi, Chachoengsao, Rayong, Sa Kaeo, Prachinburi, and Trat, expressing severe shortages of foreign labor that directly impact operations, production, services, and the competitive capacity of Thai businesses. The current situation has significantly troubled operators, especially in the construction, manufacturing, and agricultural sectors, along with seasonal fruit picking, all of which are principal economic sectors related to public investment projects in infrastructure during the second half of 2026.

Mr. Suchart Chandrahanarak, Vice Chairman of the Federation of Thai Industries, stated that the Joint Private Sector Committee of Three Institutions (JCC) is concerned about the current situation of foreign labor shortages which lacks clear and concrete remedial strategies. Thus, he urges the government to expedite solutions for the shortage of foreign labor in various industries. The JCC is acutely aware that managing foreign labor requires consideration of security as well as economic and social dimensions comprehensively. However, under the current urgent circumstances, as previously mentioned, there is a pressing need to implement both short-term and medium-term measures, particularly regarding the extension of work permits for foreign labor of all nationalities currently in Thailand. This is an essential immediate measure that must be taken promptly to prevent these laborers from becoming undocumented and unmanageable, which could lead to security issues for the country. Concurrently, a structured plan for managing foreign labor from all nationalities must be promptly developed to maintain labor stability in the country. Therefore, the JCC proposes that the government urgently address the shortage of foreign labor specifically as follows:

1. Consider measures for extending work permits for foreign labor of all nationalities residing in Thailand and ensure that their backgrounds are thoroughly checked with security authorities to establish a systematic supervision framework under clear and strict conditions, while also holding employers accountable and responsible for appropriate supervision. If any foreign labor breaches national security, they should be promptly repatriated. For seasonal fruit pickers, especially in eastern provinces such as Chanthaburi, Rayong, Trat, Prachinburi, and Sa Kaeo, it is urged that the relevant governors coordinate with the private sector in the provinces to implement appropriate supervision measures urgently to prepare for the significant upcoming fruit harvest. This proposal aligns with the resolutions of the Foreign Workers Management Policy Committee (FWMPC) dated February 12 and 20, 2026, chaired by the then Minister of Labor.

2. Foreign labor of all nationalities who have left Thailand or entered illegally should not be granted work permit renewals under any circumstances.

3. Reduce the procedures and costs for importing and registering foreign labor of all nationalities that have employers and reside in Thailand, to alleviate the burden on business operators and to ensure that the existing foreign labor supply within the country remains sufficient.

4. Accelerate the resolution of issues concerning the use of e-Work Permit by the Department of Employment to ensure stability, user-friendliness, and effectiveness in resolving system failures and long queues that lead employers and foreign laborers to miss out on renewal deadlines. This situation causes foreign laborers to fall out of the system, leading employers and foreign laborers to incur additional costs and risk penalties from immigration authorities. Additionally, the e-Work Permit system is not yet integrated with other agencies' databases, such as immigration, social security, or public health, leading to repetitive data entry and discrepancies. While the e-Work Permit system is being revised, it is requested that the Ministry of Labor allow the existing system to be used concurrently as an interim measure, and that the Ministry coordinates with immigration authorities to exercise leniency regarding the apprehension of illegal workers due to these circumstances.

5. The Ministry of Labor should plan for the long-term replacement of foreign labor by expanding avenues for the import of foreign labor under MOU agreements by expediting negotiations with source countries to procure and import labor from countries such as Sri Lanka, Bangladesh, and Indonesia, among others, to urgently supply the industrial sectors facing shortages.

The JCC emphasizes that the Thai private sector supports the employment of foreign labor legally and is ready to cooperate with the government in all aspects to achieve this policy. However, if the situation is not rectified promptly, many operators, especially SMEs, will face severe impacts, which will inevitably affect the overall economy of the country.