ASEAN

Impacts of Covid-19 force close to 800,000 in Thailand into poverty

ALMOST 800,000 more people in Thailand slipped into poverty last year due to social and economic impacts of the Covid-19 pandemic.

A study of the public health crisis found that the unemployment rate in Thailand rose to almost two per cent in the second quarter of last year, compared to just above one per cent in the first quarter.

This resulted in about 700,000 people losing their jobs.

According to a Bangkok Post report, the slump in income has also increased poverty, with the World Bank saying the number of people living in poverty rose by 780,000 people last year.

The findings of the study that was commissioned by the Thailand Science Research and Innovation, were discussed at a recent forum attended by researchers and experts.

Somchai Jitsuchon from the Thailand Development Research Institute said the study analysed Covid-19 impact on poverty with a focus on vulnerable groups such as women, children, the elderly, disabled, homeless and migrant workers.

He said although unemployment figures were up in the second quarter, the increase was not substantial as some workers were furloughed or had their working hours cut, so technically they did not lose their jobs.

According to the Thai central bank, people go into "quasi-unemployment" category when they work less than four hours a day. Somchai said the central bank put the number of quasi-unemployed at around 5.4 million in the second quarter of last year.

Working hours in Thailand dropped from an average of 41 hours a week in the first quarter of last year to 39 hours in the second quarter.

According to the Post, the study found that the third Covid-19 outbreak in April this year exacerbated the poverty situation, with workers aged above 40 years and with little education, being the worst affected.

It was found that they were the least able to adjust to the demands and changing conditions of employment as the pandemic reshaped the way businesses and companies operated.

Companies have started to rely more on communication tools and technology as many resorted to work from home arrangements due to pandemic related social distancing restrictions.

Researchers said that at the same time, low and middle income households became entrenched deeper in debt as the pandemic drained the little financial security they had.

Somchai said the government needed to take stock of the situation especially on its social impacts and come up with mitigation programmes.

The measures should be highly adaptable and the availability of Covid-19 vaccine should also be prioritised for these vulnerable groups, he added.

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