According to OurWorldInData, unemployment rates in Thailand and Cambodia are 0.7% and 0.3%, respectively. To put it another way, Thailand can claim to have less than a fifth of neighbouring Malaysia's unemployment rate (3.8%) and Cambodia can claim to have less than a quarter of neighbouring Vietnam's unemployment rate (1.4%) – and the unemployment rates of Malaysia and Vietnam themselves are much lower than those of most Western countries.
How did Thailand and Cambodia achieve such low levels of unemployment?:
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Both nations have large informal economies, but shouldn't that make unemployment figures appear higher, not lower, than the reality (e.g. the 33.2% unemployment rate in South Africa)?
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While the current low unemployment rates in places like Cambodia (and to a lesser extent, Laos, Vietnam and the Philippines) might be explained by the large numbers of otherwise-unemployed people leaving the country, it doesn't explain Thailand's low unemployment rates because Thailand has a net positive immigration rate.
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Thailand and Cambodia fought a war in 2025, but its relatively small size compared to the Russia-Ukraine War) makes me doubt if it put much downward pressure on their unemployment rates – also note that despite the Russia-Ukraine War lowering Russian and Ukrainian unemployment rates, they are still 2.5% and 9.8%, respectively.
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Correct me if I'm wrong, but the Thai and Cambodian economies both focus on manufacturing and primary industries (e.g. farming, fishing, logging), so perhaps their low unemployment rates are due to not suffering the AI-related layoffs many countries are experiencing. On the other hand, wouldn't this make both countries vulnerable to layoffs due to mechanisation of manufacturing and primary industries (unless they already did mechanise as much as they needed to)?
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On Australian subreddits, lots of people yearn to leave Australia to move to Thailand for its lower cost of living. But would this drastically affect Thai unemployment rates?
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Or should I just suspect that both countries are lying about their unemployment rates?
How do Thailand and Cambodia achieve such low unemployment rates?
byu/Polyphagous_person inAskEconomics
Posted by Polyphagous_person