BANGKOK: The Bank of Thailand has painted a gloomy picture of private consumption prospects, saying the income of those at the bottom of the economic ladder is slow to recover while their debts keep increasing. “Looking forward, purchasing power will remain modest, especially that of the low-income earners whose income has not yet clearly recovered,” said Jaturong Jantarangs, assistant governor of the central bank’s monetary policy group. He said the central bank found that the economic recovery was concentrated in specific sectors and segments of the labour market. Employment has improved mostly in businesses benefiting from exports and tourism, including transport, hotels, restaurants, processed foods, rubber and plastics.
Employment of middle-income earners in the non-farm sector has improved, while employment of low-income earners has yet to pick up.
The central bank defines middle-income earners as those earning 10,000-20,000 baht a month, while low-income earners are those who earn less than 10,000 baht a month. According to Bank of Thailand data, low-income employees account for roughly half of employment in the non-farm sector. Mr Jaturong said the uneven recovery in the labour market was partly due to the adoption of automation in the manufacturing sector, a phenomenon dealing a blow to low-income earners with comparatively lower skills.
