Thailand's unemployment rate is projected to rise to 2 percent this year, up from 1.8 percent the previous year due to the economic slowdown attributed mainly to the surge in oil prices, according to the Kasikorn Research Center (KRC).

Affected by the climbing oil price, high interest rates and the slowdown in investment and consumption, the economic growth this year is expected to fall down, causing employment decline.

Once some businesses begin to slash jobs, workers in the agricultural sectors and those who do independent jobs such as barbers and hawkers would suffer.

These workers have no access to social welfare and job security. They lack bargaining power as they have no organization or labor union to look after their interests, said the research center.

Wilaiwan Sae Tia, chairwoman of the Thai Labor Solidarity Committee, said the group is keeping track of the unemployment rate among workers in textile, electronics and steel industries.

Although no reports of immediate job cuts have emerged so far, some workers are likely to be laid off in the next few months if the oil price keeps climbing, he said.

Meanwhile, KGI Securities (Thailand) forecast that the baht could strengthen further to the U.S. dollar because the United States is still applying its dollar depreciation policy to curtail its massive trade deficit.

Santi Vilassakdanont, chairman of the Federation of Thai Industries, said the strong baht will have an impact on exporters, and urged the Bank of Thailand to give a clear direction of the baht movement and to maintain the currency's stability.

Source: Xinhua