The impact of involuntary job loss on unemployment rate during Asian financial crisis and subprime crisis in Thailand

Abstract

Each year, thousands of workers lose their jobs for reasons beyond their control, such as reorganization, technological displacement, and economic crisis, among others. Unexpected job loss is a disruptive occurrence that alters workers' career trajectory and has a negative impact on society and the economy which in Thailand can be observed during economic downturns including the Asian Financial Crisis (1997) and the Subprime Crisis (2008). This study aims to gain a comprehensive understanding of the impact of the Asian Financial Crisis and the Subprime Crisis on the unemployment rate in Thailand before, during, and after the crises. The data from Labor Force Survey Whole Kingdom from the years 1993, 1998, 2003, 2008, and 2013 collected by the National Statistical Office Thailand is used to conduct analysis by age cohort to examine such impact across different age groups, educational attainment levels, and industries. The findings reveal that the economic crises had little effect on unemployment: an increase trend of the unemployment rate from pre-crisis to during crisis, and a generally decrease trend from pre-crisis to post crisis. This shows the resiliency of Thailand's economy as well as implies its reliance on the informal sector during the crises.