BANGKOK: Around 174,000 young Thai graduates aged 20–24 were unemployed in the second quarter of 2026, highlighting a widening mismatch between the skills produced by the education system and those increasingly sought by employers, according to Kasikorn Research Center (KResearch).
Thailand had 401,000 unemployed people during the quarter, up 10% from a year earlier and the highest level in seven quarters, KResearch said. The last time unemployment exceeded 400,000 was in the third quarter of 2024.
Young graduates aged 20–24 accounted for 44% of all unemployed people, or about 174,000, illustrating the difficulties facing new entrants to the labour market as technology and Thailand’s economic structure reshape employers’ requirements.
KResearch identifies skills mismatch as one of the main factors behind the high proportion of unemployed young graduates.
Thailand needs 1.1 million skilled workers
On the demand side, Thailand is expected to require about 1.1 million highly skilled workers between 2025 and 2029 to support targeted industries.
More than 69% of this demand is concentrated in three areas: aviation and logistics, smart electronics and industrial robotics, and the digital industry.
The supply of graduates, however, points in a different direction.
More than 60% of Thai graduates continue to study humanities and social sciences, while the proportion graduating in science, technology, engineering and mathematics (STEM) has declined.
STEM graduates accounted for 23.2% of all graduates in 2020, falling to 22.3% in 2025, according to KResearch.
The figures underline the challenge of aligning education and training more closely with the skills required by industries Thailand is seeking to develop.
Technology and healthcare skills increasingly important
KResearch said workers would need to acquire new skills, particularly in technology and healthcare, to support both the shift towards targeted industries and Thailand’s transition into a super-aged society.
The research centre has previously warned that population ageing will intensify labour shortages in some industries, adding further pressure on businesses to improve productivity and adapt their workforces.
The challenge is therefore not only to create more jobs, but also to ensure that workers have the qualifications and practical capabilities required for those positions.
K-shaped recovery constrains hiring
KResearch identified three major issues likely to shape Thailand’s labour market.
The first is the continuing skills mismatch, requiring workers to reskill and upskill as demand changes.
The second is Thailand’s K-shaped economic recovery, in which businesses are recovering at different speeds. Weak consumer purchasing power, intense competition and persistently high operating costs continue to weigh on companies’ revenue and restrict their capacity to hire.
The third is technology disruption, particularly the growing use of artificial intelligence and automation in business operations.
Young graduates and lower-skilled workers face greater exposure to displacement as companies automate more processes, KResearch said.
Businesses will therefore need to strike a balance between their use of workers, AI and automation, while employees will increasingly need to develop skills that complement new technologies rather than compete directly with them.
For Thailand, narrowing the gap between what students learn and what employers need is becoming increasingly important as the country simultaneously faces technological change, an ageing population and rising demand for highly skilled labour. - The Nation/ANN
[Source: Kasikorn Research]
