Abhisit urges labour skill improvements

Prime Minister Abhisit Vejjajiva says Thai workers must start honing their skills now if they want to remain competitive after the advent of the Asean Economic Community (AEC) in 2015.

The AEC lends urgency to wages concerns, as a free flow of workers between countries will tighten labour competition.

''The possibility of switching investment bases or adjusting investment strategies will result in a change in market demand for labour skills,'' said Mr Abhisit. ''Nowadays, foreign investors interested in Thailand are concerned about labour shortages, especially skilled labour.''

He said 25% of the population is over 60 years old, curbing the labour pool.

Thailand's educational system often produces human resources that do not match demand, possibly due to past social values, said Mr Abhisit. This has resulted in more university graduates than the market can accommodate and a shortage of vocational graduates.

Vocational students now comprise 40% of all graduates each year, and the government hopes to increase the proportion to 60%.

The cabinet in March approved a draft royal decree calling for a Thai Vocational Qualifications Institute (TVQI) as an autonomous public organisation under the supervision of the PM's Office to help establish occupational standards.

It will draw on company input to specify skill benchmarks for specific jobs in thousands of fields.

Seven industries including the construction, hospitality, electronics and printing sectors will need between 250,000 and 350,000 workers over the next five years, 70% of them vocational graduates.