Abstract
In the 1960s, Thailand and the Philippines had similar population sizes. However, the different policies on economic development and population control affected the rate of economic growth. Thailand overtook the Philippines in terms of GDP per capita in the 1980s, as Thailand strongly promoted foreign direct investment in manufacturing sectors to absorb surplus labours from the agricultural sector. It also initiated one of the world’s most successful national family planning programmes and gained a demographic dividend. In contrast, the Philippines lagged behind because it was not dedicated to the promotion of foreign direct investment and its family planning programme was ineffective. When the labour supply exceeds demand, unemployment and poverty problems increase. The Philippines government, faced with an overpopulation problem, has adopted a labour export policy for the last four decades. In contrast, Thailand has struggled with labour shortages, particularly unskilled labours, and an increasing proportion of the elderly.
This article aims to provide a comparative analysis of the labour problems between Thailand and the Philippines using panel data compiled from labour force surveys and educational statistics for the period 1960–2012. Then it analyzes the employment opportunities for the Thai and Filipino workers that might come with the ASEAN Economic Community (AEC) in 2015, which is expected to help increase ASEAN competitiveness and adjust the imbalances in labour supply and demand among member countries. Labour strategies needed ahead of AEC will also be discussed.
Keywords: Thailand, Philippines, ASEAN Economic Community (AEC), imbalances of labour supply and demand |