Recent group discussions with employees and self-employed workers in Chonburi and
Nakhon Ratchasima indicate that the adverse effect of the global crisis was not just hit the
exporting firms to reduce their production. When the exporting firms got lower sales, they
stopped hiring subcontract workers. When the sales of exporting firms continued declining,
they reduced overtime employment or laid off some employees. Many employees got one
month off with partial pay. Some firms reduced fringe benefits or even the safety materials,
e.g. mask for working in the dusty environment. When subcontract workers and employees
got lower earnings, they reduced consumption, both food and non-food, and some workers
postponed paying rent. The second round of the effect went to self-employed and landlord.
However, the impact of global crisis on economic growth has been small compared with that of the 1997 financial crisis, and it has had a short-term impact on employment in the
manufacturing sector.
The social groups involved with the manufacturing sector suffered adverse effects.
Employees who were in the age group 20-29 years, or who had a secondary or vocational
level of education lost income owing to a lower number of hours worked overtime.
Government policies to stimulate employment may not be effective because the coverage of
the Social Security Law is low. Currently, the impact of stimulus package-I is not clear as the
short-term multiplier effect tended to be small