Laotian Migration in Thailand: Economic Structure and Crisis

The primary destination country of international migration from Lao PDR is Thailand due mainly to economic and social disparities between both countries which bring about the push and pull factors which have increased of migration from Lao PDR into Thailand.  To precisely analyze impacts of crisis pressure to Laotian migrants in Thailand, one needs to closely monitor these push and pull factors.

For the pull factors, firstly, it is simply explainable by economic rationale that wage differentials between both countries determine migration flows from Lao PDR to Thailand. The per capita GDP of Thailand adjusted for purchasing power in 2006 were 6.1 times that of Laos, increased from 4.3 times in 2003. Second, implementation of dual economy can be another important pull factors.  That is, there is both a capital-intensive sector, which implies need to employ highly skilled workers and maintaining a labor-intensive sector, which still hire low-skilled and temporary workers. In that case, Thai employers need Laotian workers who work for lower wage. Third, there are similarities of traditions, customs, languages between both countries that cause easy assess to job information, especially those living along borders area, to create social networks and Thai-Lao migration-related institutions bring migrants from Lao PDR to easily seek job in Thailand (Rukumnuaykit, 2009). Forth, the demographic dynamics of Thailand and Lao PDR stimulate the labor movement between both countries.  There is long-term pattern to decline of the proportion of young working-age in Thailand (15-39 years), while the number of people in this demographic group is increasing by 1.2 percent per year in Lao PDR (Huguet, 2007)

Push factors, on the other hand, play more important role for Migrants from Lao PDR to leave their country. Limited economic opportunity in job market, high rate of unemployment, and low wages are also the majored push factors for Laotian migrants to migrate aboard. Year-round of rice shortage and few job creations after agricultural seasons cause farmers in Lao PDR to seek opportunity to work in Thailand where there are plenty of jobs.

During economic crisis in 2008-2009, migrant workers are one of the most vulnerable groups in terms of job losses during economic crisis, especially in sectors sensitive to economic cycle such as construction, manufacturing, tourism, and tourism-related service. Some migrants are predicted to return home during periods of economic crisis (IOM, 2009).  Governments and economic agents in Thailand regularly forecast upward trend of unemployment rate during economic crisis. The National Economic and Social Development Board (NESDB) forecast a number of unemployed workers to be around 900,000-1,200,000 persons or around 2.5-3.5 percent. The Fiscal Policy Office (FPO) predicts that there will be around 1.4 millions of unemployed persons. The Thailand’s Ministry of Labor reported lay-off situation during the period of January 1^st to May 15^th, 2009 that there are around 762 enterprises that tend to lay-off around 106,936 workers. Types of industries that workers are most likely to be laid-off are electronics and its components, textiles and apparels, tanneries and foot wears, motor transport equipments, and furniture.

Nevertheless, even though Thailand is one of the countries seriously hit by economic crisis in 2008-2009 by losing employment opportunities, there are a few reasons to explain how likely migrants will remain their stay in Thailand and decide not to return home. By comparing “push” and “pull” factors of migration from Laos to Thailand above, pull factors seems to be outweighed by push factors because of these following reasons.  

Firstly, Thai government made strong commitment to migration policy not to lay-off or repatriate migrant workers home. Present policy emphasizes needs of private sectors to employ migrant workers in order to reduce their cost of production in labor-intensive sectors. Ministry of labor in Thailand report shortage situation of unskilled workers because Thai workers are not willing to work in some occupations, categorized under the 3D jobs. In 2008, survey of labor demand shows that there were around 1.2 millions of workers demanded by employers, whereas there are only 501,570 documented migrant workers from Myanmar, Lao PDR, and Cambodia obtained permission to work in Thailand allowed to work on the temporary basis until June 2009. Even though there are about 70 of those documented workers report to their intention to renew work permit, those insufficient numbers are still not be able to fulfill the demand proposed by the Thai employers.

Secondly, by observing primary sectors employing migrant workers, Chalamwong (2008) predicts that employees in construction and domestic work still need more demand to employ more workers. Agricultural sector is less affected by the crisis. Migrants have an open opportunity to seek job in those sectors, even though some sectors like manufacturing and tourism are seriously hit by crisis.

Thirdly, there were bilateral MoU establishment between sending country (Myanmar, Lao PDR, and Cambodia) and receiving country (Thailand) to facilitate regular migrant workers between both countries. The MoU framework helps to improve protection of migrant workers in Thailand. Migrant workers from those three countries who currently work in Thailand with valid work permit can possibly obtain temporary passports through their embassy in Bangkok without having to return home. Called “National Verification”, this process needs those sending countries to send officials to Thailand to verify workers’ nationalities before issuing temporary passports. Migrants who obtain temporary passport can return home to get permanent passports. Even though the process somehow is time consuming, many migrant workers chose, at least, irregular channels to stay and work in Thailand rather than the legal channels than to return home.

Lastly, on March 29^th, 2009, the Committee on Illegal Migrant Workers Administration approved in principle the implementation of the registration process for undocumented migrant workers from Myanmar, Lao PDR, and Cambodia. Approved by the Cabinet in May 27^th, 2009, migrant workers from those three countries who are registered to documented workers are allowed to work in the following sector: 1) Fishing, 2) Fish and Marine Products, 3) Agriculture and Livestock, 4) Construction, 5) Domestic Work, and 6) Other industries that do not hinder employment of domestic workers. Definitely, this upcoming registration process will open great opportunities for migrant workers in Myanmar, Lao PDR, and Cambodia to seek job legally in Thailand. The announcement of the new registration will unavoidably induce an influx of migrant workers of those who are currently plan to come to Thailand and of those who still deciding. New registration process, coupled with higher demand on specific sectors, i.e. construction, agriculture, and domestic work, is majored decision among both documented and undocumented migrant workers from Lao PDR, who are currently working in Thailand to remain their stay and less likely to return home.

In addition, Thai officials say they will speed up the process of cooperation with Lao officials to verify the nationality of Lao workers in Thailand, in an effort to prevent them from falling victims to international human trafficking and to reduce the number of Lao labor illegally working in Thailand.

Reference

Chalamwong, Yongyut (2008) Impact of Labor Market Crisis on the Employment ofMigrant Workers from Neighboring Countries, Bangkok: Thailand Development Research Institute.

Huguet, Jerrold W. (2007). Thailand’s Policy Approach to Irregular Migration. Joint Conference on Managing Labour Migration in East Asia: Policies and Outcomes. (Singapore Management University and International Labour Organization). 

Rukumnuaykit, Pungpond (2009) A Synthesis Report on Labour Migration Policies, Management and Immigration Pressure in Thailand, Bangkok: International Labour Organization.