|Thailand is among the top five economies in the world for salary increases based on the Annual Salary Trends made by ECA International / Photo by: streetwindy via Pixabay|
Thailand is among the top five economies in the world for salary increases based on the Annual Salary Trends made by ECA International, a UK-based company that provides data on cost of living, accommodation, tax, labor law, and salary.
Real Salary Increase in Thailand
The emerging economy of Thailand expects a real salary increase of 4.1 percent in 2020 from 3.9 percent in 2019, placing it in the global top five. The Salary Trends Report analyzed the current and projected salary increases for local employees in 68 countries from around the world. It added that workers in Thailand will see further increase to their wages as the country’s nominal salaries are forecast to be given by employees ahead of the low inflation level that the country will see next year.
|The emerging economy of Thailand expects a real salary increase of 4.1 percent in 2020 from 3.9 percent in 2019, placing it in the global top five / Photo by: xeno_mas via Pixabay|
Asian Countries Dominate the Top 20 Economies for Salary Increases
India is the country that will see the highest real salary increase in the continent, forecasts to be at 5.4 percent despite a slight decrease from its 2019 real salary increase at 5.6 percent. ECA International Regional Director of Asia Lee Quane said that the majority of the highest real salary hike in the globe will happen in Asia. The Asia Pacific region’s average real salary increase alone will be at 3.2 percent, higher than the worldwide average of 1.4 percent and about three times higher than Europe’s average of 1.1 percent.
The reason why Asian countries dominate is because of rising productivity and low inflation in their economies. Thus, it results in the rapid growth of the employees’ salaries than the other regions. India dominates the global ranking despite the inflation and slowing economy. The second highest country in terms of 2020 global ranking for real salary increase is Vietnam from a 4.0 percent salary increase in 2019 to 5.1 percent in 2020.
Thailand’s Central Bank to Lower Economic Growth Outlook
In a separate report by Reuters, Thailand’s deputy central bank governor Mathee Supapongse said that the country’s central bank will lower its economic growth outlook for 2019 and 2020. It likewise has a monetary policy room to help the economy. Monetary policy plays an important role in the economic development of a country by controlling the general economic activities and price fluctuations. This is achieved by making a proper adjustment between the demand for and supply of money. It likewise helps maintain exchange stability and can work to improve the credit system and currency of a country.
Supapongse says that Thailand’s economy is not in crisis because the banks and economic fundamentals remain strong. The central bank’s 2019 and 2020 economic growth outlook is currently at 2.8 percent and 3.3 percent respectively for their next policy meeting in December. Supapongse added that the growth forecast will possibly come down but as to how much, it will depend on the economic data.
ECA International has likewise forecasted that Indonesia will see the third highest real salary increase for 2020, which will be at 4.6 percent from the current 3.8 percent. It will be followed by Cambodia. Both Thailand and Ukraine are ranked fifth, Philippines 7th, China and South Korea 8th, and Bangladesh 10th. Neighboring Pakistan is forecasted to have a different scenario compared to other Asian nations. It will be the only country in the Asia Pacific to experience a decrease in the real salary. This means that employees in Pakistan will experience salaries worse than last year.
Meanwhile, the real salary increase in China is expected to remain above the regional and global average at 3.6 percent.
|The biggest industries that play a significant role in the economic growth of Thailand, on the other hand, includes the industry and manufacturing sector, which provides an approximate 14 percent formal jobs in the country / Photo by: Slleong via Wikimedia Commons|
Industries With the Largest Wage and Salary Employment Growth and Decline
In the United States, industries with the largest wage and salary employment growth in 2018 include leisure and hospitality - food services and drinking places (11926.3 thousands of jobs), construction (7289.3), healthcare and social assistance - individual and family services (2464.2), healthcare and social assistance - home health care services (1472.7), professional and business services - computer systems design and related services (2121.6), and healthcare and social assistance - offices of physicians (2620.6).
Meanwhile, industries with the largest wage decline include information - wired telecommunication carriers (547.3 thousands of jobs), federal government - postal services (608.6), wholesale trade (5852.5), all other retail (7619.9), manufacturing - printing and related support activities (430.9), and information - newspaper, periodical, book, and directory publishers (324.7). The data was reported by the US Department of Labor Bureau of Labor Statistics.
The biggest industries that play a significant role in the economic growth of Thailand, on the other hand, includes the industry and manufacturing sector, which provides an approximate 14 percent formal jobs in the country. Thailand also has the largest automotive industry in Southeast Asia. Trucks comprise 4.7 percent of their total exports, automotive parts 2.7 percent, and cars 3.7 percent. The electronics manufacturing industry also produces the biggest percentage of exported goods, accounting for 15 percent of the total exports leaving Thailand, according to World Atlas.
With such data from ECA International on a salary increase, it may help employers recruit and retain more talent, and employees will more likely respond with increased work ethic. As a result, it will encourage a more competitive workforce.