The COVID-19 outbreak has created significant challenges for Thailand’s labor market. The COVID-19 outbreak led to significant employment losses in the first half of 2020 and a decline in hours worked. The labor market recovered in the second half of the year, but additional virus waves and transmission control measures have interrupted the recovery.

The outbreak has weakened a labor market that was already facing challenges. Labor force participation has been declining, the shift of jobs out of the low-productivity agriculture sector has slowed, and informality is the norm.

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