Thailand Q3 Jobless Rate Drops Despite Economic Contraction

Thailand’s unemployment rate fell to 0.76% in Q3 2025 from 0.88% in the previous quarter, easing for the second straight period, the National Economic and Social Development Council said in a statement. It was the lowest level since Q4 2014, signaling a modest increase in labor demand even as the broader economy remained fragile. Employment, however, slipped 0.5% after a marginal 0.02% rise in Q2, underscoring underlying softness. The drop in joblessness came even as the quarterly GDP contracted, suggesting resilience in the labor market, supported by seasonal hiring and momentum under the new leadership of Prime Minister Anutin Charnvirakul.

Thailand’s unemployment rate stood at 0.91% in Q2 2025, edging up from 0.89% in the previous quarter and marking the highest reading since Q3 2024. The agriculture sector, which still employs nearly one-third of the workforce, has been under pressure from erratic weather conditions, while manufacturing hiring showed signs of stabilizing after several weak quarters. Meanwhile, labor demand in tourism and services continued to recover, though at a slower pace than earlier in the year, reflecting soft global demand and high household debt that weighs on domestic spending. The government has recently highlighted job creation and skill development as key priorities under its medium-term economic plan, aiming to boost productivity and support a more sustainable recovery. Meanwhile, employment growth remained subdued, edging up only 0.02% after a 0.5% annual drop in Q1.