Thailand Faces Labour Shortage as Cambodian Migrant Workers Mass Exodus

Strategic Insights -

Thailand is facing an immediate labour shortage following the sudden departure of hundreds of thousands of Cambodian migrant workers due to ongoing tensions along the Thai-Cambodian border. This exodus has disrupted production and operations across various industries, including agriculture, construction, food processing, and services. Officially, around 500,000 Cambodian workers are legally employed in Thailand, but the total number of documented and undocumented workers exceeds 1 million to 1.2 million individuals, who play a vital role in Thailand's economy and contribute significantly to Cambodia's Gross Domestic Product (GDP).

Key Takeaways:

  • The mass exodus of Cambodian migrant workers has led to an acute labour deficit in Thailand, affecting industries such as agriculture, construction, and food processing, particularly in border provinces like Chanthaburi, Trat, and Surin.
  • Cambodian migrant workers make up 70-80% of the total workforce in these regions, forcing businesses to scale back operations.
  • The rapid return of workers was reportedly triggered by widespread rumours of insecurity within Thailand, leading authorities to urge proactive measures to counter negative narratives and foster positive relations with Cambodian workers.
  • The sudden disappearance of hundreds of thousands of workers has resulted in unemployment back home, leading to a loss of income and an immediate decline in vital remittances.
  • A considerable number of Cambodian workers remain in Thailand, particularly in areas further from the border, drawn by higher wages, job security, and the lack of guaranteed employment opportunities back in Cambodia.
  • The Thai government may need to consider importing more labour from Laos and Myanmar as an alternative, but fully replacing the 1 million to 1.2 million Cambodian workers poses short-term logistical challenges.
  • Increasing labour quotas, managing immigration procedures, and navigating higher legal costs could impact Thailand's competitiveness in its labour-intensive manufacturing sectors.
  • In the long term, a structural shift in production away from labour-intensive models towards greater reliance on technology and capital is deemed unavoidable.

Statistics:

  • Approximately 400,000 Cambodian workers returned to their home country during a five-day period of intense conflict in late July 2025.
  • A staggering 150,000 Cambodian workers departed on the first day alone.
  • Officially, around 500,000 Cambodian workers are legally employed in Thailand.
  • Estimated total number of documented and undocumented Cambodian workers: 1 million to 1.2 million individuals.
  • Cambodian workers remit an estimated 40 billion to 65 billion baht annually, accounting for over 6.5% of Cambodia's Gross Domestic Product (GDP).
  • Cambodian workers make up 70-80% of the total workforce in border provinces like Chanthaburi, Trat, and Surin.

Sources:

  • Anusorn Tamajai, Dean of the Faculty of Economics and Director of the Digital Economy, Investment and International Trade Research Centre (DEIIT) at the University of the Thai Chamber of Commerce.