Pongsuk HiranprueckThe founder and CEO of Show No Limit (BT Beartai) often emphasizes that the government's message is often “leave no one,” but in reality, not everyone is ready at the same time, and some workers have to leave it inevitably to move on to a new world.
Global trends focus on reducing the workforce
Kriengkrai ThiennukulThe chairman of the Thai Federation of Industry (FTI) said labor costs usually account for 10-30% of the total costs, depending on the company. However, other costs, such as office rent, electricity, and cleaning services, are often much higher and more flexible.
“This kind of adjustment is essentially reducing unnecessary excess,” he said. “This is a global trend. What's more, global regulations such as US tax policy accelerate the need for countries to cut costs. AI can replace many human roles, especially secretary jobs and repetitive administrative tasks, which previously required a large number of staff.”
Thai companies are now adapting and restructuring their work processes to save labor processes, increasingly relying on modern technologies, including AI and digital tools that significantly reduce labor requirements.
However, this is just the first step, consistent with global experts' predictions that hundreds of millions of jobs could ultimately be banished by AI. This trend is particularly apparent overseas in the US. In particular, large companies are cutting thousands of positions while replacing staff with AI systems.
Flexible job arrangements that emerged during the Covid-19 era, such as working from home and project-based employment, will further help businesses cut costs. This shift is expected to reduce office space in the future, as technology can replace many features and online surveillance allows employees to verify whether they are actually working. Reduced office rent and overtime work increase efficiency and competitiveness.
Aging society and the younger generation exacerbate labor shortages
Tanit SoratoThe vice president of Thailand's Employers Federation said the economy remains stronger than expected for the first seven months of 2025. However, he warned from September onwards to watch when it is expected that the US stock depletion will lead to a major contraction in exports next year.
“For the first seven months of this year, the Thai economy has remained as stable as it was at the beginning of the year, with exports as an important pillar of supporting employment,” he said. “Exports have increased by 14%, and the latest unemployment rate at the National Bureau of Statistics is only 0.7%, which is very low compared to previous periods, at 1% last year.”
Tanit pointed out that the current photographs in Thailand are not unemployed, but rather labor shortages. The Ministry of Labor is preparing to recruit foreign workers from Cambodia, Indonesia and the Philippines, while also ensuring that undocumented workers can be registered legally, clearly indicating that businesses need real workers rather than iddle labor.
Furthermore, the perception that employers are increasingly hiring part-time staff is misleading. Full-time positions are still in demand, but it is difficult for younger generations to find workers because they prefer independent or freelance jobs rather than traditional full-time employment.
“Regardless of the economic situation, the labor shortage in Thailand remains a structural issue,” Tanit explained. “The country is moving towards an aging society, with the number of new graduates dropping every year, and the reluctance for younger generations to take full-time positions exacerbates the problem. So the solution is not to create jobs, but to find people who fill vacant positions.”
The second half of the global eye when AI threatens employment
The global job market experienced turbulence in the first half of 2025. This is because many multinational companies have announced massive layoffs in response to economic volatility and disruption across multiple industries. Volkswagen, the cornerstone of the German automotive sector, for example, announced its plans at the end of 2024, beginning a restructuring this year with a plan to cut 35,000 jobs over five years.
Meanwhile, Japanese automaker Nissan Motor has also undergone major restructuring, with plans to cut its workforce with approximately 20,000 employees.
Even roles that were once considered safe, such as government jobs, are becoming unstable in the United States. The Department of Government Efficiency (DOGE), a federal agency once overseen by Elon Musk, a former adviser to President Donald Trump, has conducted layoffs to federal offices around the country. This measure aims to reduce spending and reduce the US budget deficit. According to the New York Times at the end of July, around 150,000 federal employees and civil servants accepted an offer to leave their positions.
Looking at the second half of 2025, the labor market, particularly the US labor market, has already endured the tensions of the world trade war – has begun to show signs of another pressing problem.
Recruitment company challenger Grey & Christmas recently reported that in the first seven months of 2025, adoption of generation AI in the private sector has increased, creating more than 10,000 new AI support roles, and that AI itself has emerged as one of five major factors driving layoffs this year.
Throughout July, US companies announced more than 806,000 private sector employment cuts, according to Challenger data.
The technology sector was the most difficult hit. Private companies have cut more than 89,000 technology-related positions, up 36% from the previous year, and since 2023, more than 27,000 roles directly related to AI have already been eliminated.
“The industry is transformed by advances in AI and continued uncertainty about work visas, leading to a reduction in staff numbers,” says Challenger Report.
Meanwhile, Handshake, a job platform focused on Generation Z, revealed that the impact of AI on employment is most likely to be most noticeable among younger workers. Entry-level positions traditionally fulfilled by recent graduates fell 15% last year, with the number of employers referring to “AI” in job descriptions up 400%.
