Pongsuk Hiranprueck, founder and CEO of Show No Limit (BT Beartai), added that while government messaging often stresses “leaving no one behind,” in reality, not everyone can be ready at the same time, and some workers inevitably must be left behind for the country to progress into the new world.
Global trend focuses on workforce reduction
Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), said that labour costs typically account for 10-30% of total costs depending on the company. However, other costs—such as office rent, electricity and cleaning services—are often far higher and more flexible to reduce.
“Such adjustments are essentially about cutting unnecessary excess,” he said. “This is a global trend. In addition, worldwide regulations, such as U.S. tax policies, accelerate the need for countries to reduce costs. AI can replace many human roles, especially in administrative and management functions, such as secretarial work or repetitive admin tasks that previously required large numbers of staff.”
Thai businesses are now adapting and restructuring work processes to save costs, increasingly relying on modern technology, including AI and digital tools, which significantly reduce labour requirements.
However, this is only a first step, consistent with global expert predictions that hundreds of millions of jobs could eventually be displaced by AI. This trend is already evident abroad, particularly in the United States, where major firms have cut thousands of positions while replacing staff with AI systems.
Flexible work arrangements that emerged during the COVID‑19 era, such as working from home and project-based employment, further help companies reduce costs. This shift is expected to shrink office spaces in the future, as technology can replace many functions and online monitoring can verify whether employees are actually working. Reduced spending on office rent and overtime boosts efficiency and competitiveness.
Aging society and younger generations exacerbate labour shortages
Tanit Sorat, Vice President of the Employers’ Confederation of Thailand, said that Thailand’s economy remained stronger than expected in the first seven months of 2025. Unemployment is at a multi-year low, reflecting robust export activity. He warned, however, to watch from September onwards, when U.S. inventory depletion is expected to lead to a significant contraction in exports next year.
“During the first seven months of this year, the Thai economy remained stable, similar to the start of the year, with exports as a key pillar supporting employment,” he said. “Exports grew 14%, and the latest unemployment figures from the National Statistical Office were just 0.7%, very low compared with previous periods and last year, when it stood at 1%.”
Tanit pointed out that Thailand’s current picture is not of unemployment, but of a labour shortage. The Ministry of Labour is preparing to recruit foreign workers from Cambodia, Indonesia and the Philippines, while also allowing undocumented workers to register legally, signalling clearly that businesses need actual workers, not idle labour.
Moreover, the perception that employers are increasingly hiring part-time staff is misleading. Full-time positions are still in demand, but it is difficult to find workers due to younger generations’ preference for independent or freelance work rather than traditional full-time employment.
“Regardless of economic conditions, Thailand’s labour shortage remains a structural issue,” Tanit explained. “The country is moving towards an ageing society, the number of new graduates is declining each year, and the younger generation’s reluctance to take full-time positions will exacerbate the problem. Therefore, the solution is not about creating jobs, but about finding people to fill positions that remain vacant.”
Global eyes on second half of year as AI threatens jobs
The global job market experienced turbulence during the first half of 2025, as numerous multinational companies announced major layoffs in response to economic volatility and disruption across multiple industries. For example, Volkswagen, a cornerstone of Germany’s automotive sector, unveiled plans at the end of 2024 and began restructuring this year, with a plan to cut 35,000 jobs over five years.
Meanwhile, the Japanese carmaker Nissan Motor is also undergoing a major restructuring, planning to reduce its workforce by around 20,000 employees.
Even roles once considered secure, such as government jobs, have become precarious in the United States. The Department of Government Efficiency (DOGE)—a federal agency once overseen by Elon Musk, former close adviser to President Donald Trump—has implemented layoffs across federal offices nationwide. This measure aims to reduce expenditure and cut the U.S. budget deficit. According to The New York Times at the end of July, approximately 150,000 federal employees and civil servants accepted offers to leave their positions.
Looking ahead to the second half of 2025, the labour market—particularly in the U.S., which has already endured the strains of global trade wars—is beginning to exhibit signs of another pressing issue: the emergence of artificial intelligence (AI) as a workforce replacement.
The recruitment firm Challenger, Gray & Christmas recently reported that in the first seven months of 2025, the adoption of Generative AI in the private sector increased, creating more than 10,000 new AI-assisted roles, while AI itself emerged as one of the five primary factors driving layoffs this year.
Throughout July, companies in the U.S. announced over 806,000 private-sector job cuts, the highest total for that month since 2020, according to Challenger’s data.
The technology sector has been the hardest hit. Private firms cut more than 89,000 tech-related positions, an increase of 36% from the previous year, and since 2023, over 27,000 roles directly related to AI have already been eliminated.
“This industry is being transformed by AI advances and ongoing uncertainty regarding work visas, leading to reductions in staff numbers,” the Challenger report noted.
Meanwhile, Handshake, a job platform focused on Generation Z, revealed that the impact of AI on employment is likely most visible among younger workers. Entry-level positions, traditionally filled by recent graduates, fell by 15% last year, and the number of employers referencing “AI” in job descriptions rose by 400%.