Thailand is facing significant challenges as the labor market sees unprecedented layoffs across multiple sectors, especially within the technology arena. Continuous waves of layoffs, stemming from economic difficulties including spiraling inflation and rising living costs, have left millions struggling to find work. Since 2023, the economic climate has pushed many to the brink, and experts warn these trends are likely to persist.
According to reports, the pandemic initially saw extraordinary hiring rates, leading to what experts describe as market overinflation. The subsequent ‘bubble burst’ due to economic correction has resulted in countless individuals losing their jobs. With layoffs continuing through the current year, predictions suggest some recovery might occur by 2025.
Indeed, the situation isn't just about numbers; it's deeply personal. Edel Holliday-Quinn, business psychologist, noted, "Some employees feel burned out and undervalued due to increased workloads and hybrid work demands." The psychological toll of this transition has led many to feel unappreciated, prompting alarming trends such as 'revenge quitting'—where dissatisfied employees choose to leave their jobs as retaliation for perceived grievances.
The discontent among workers is palpable. A survey conducted by Businessolver involving 20,000 employees across various sectors revealed stark findings: 42% of respondents, including 52% of CEOs, acknowledged working within toxic environments. Beth Hood, CEO of Verosa, succinctly captured the underlying issue, saying, "Motivation diminishes when intrinsic factors like connection and job security are unmet, leading to dissatisfaction and eventual resignation." This sentiment resonates deeply within the workforce, illustrating how workplace culture can directly affect retention rates.
Compounding the problem is generational shift within the workforce. The younger cohort, particularly those from Generation Z, displays reluctance to advance their careers under outdated workplace models. Holliday-Quinn highlighted, "Younger employees are reluctant to put forth the effort for career advancement due to perceived disadvantages," indicating their struggle against rigid hierarchies and traditional work expectations.
Organizations resisting change may face massive turnover; as Holliday-Quinn detailed, "Companies failing to adapt to expectations will struggle to retain younger talent." If businesses wish to maintain their skilled workforce, they must address these cultural and operational deficiencies swiftly.
The need for empathetic leadership has never been more evident. According to the Businessolver report, "55% of CEOs believe they lead with empathy, but only 28% of employees agree." This gap signifies potential miscommunication between management and staff, something organizations must rectify if they hope to sustain employee loyalty and morale.
Beyond the immediate effects of layoffs and dissatisfaction, the overall economic climate paints a grim picture for the future of labor markets. Millions remain on the sidelines, anxiously watching for signs of recovery. Yet, there is cautious optimism among some experts who foresee improvements by 2025 as employers adjust to the new realities of the workforce.
While some anticipate positive shifts, these changes won't come easily. Companies must recalibrate their approach to employee relations, investing more in leadership training focused on communication and empathetic engagement. This investment could turn the tide, helping retain valuable staff who might otherwise seek employment elsewhere.
The path forward involves not only addressing immediate economic pressures but also nurturing the workforce's future resilience. By valuing people over mere productivity, organizations can transition from surviving to thriving, weaving expertise and passion back together. While the repercussions of current layoffs are severe, they may also serve as a clarion call for needed change.
