Transcript Thailand’s Experiences on Compilation of Compensation to Employee and Workers’ Remittance statistics The Bank of Thailand 12 June 2009

Thailand’s Experiences on Compilation of
Compensation to Employee and Workers’
Remittance statistics
The Bank of Thailand
12 June 2009
Topics
•
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Introduction
Summary on Thai workers abroad
Summary on Migrant workers in Thailand
Data Source, compilation, data constraints
Estimation on compensation of employees and
workers’ remittance in Thailand
• Future plans
Introduction
• Compensation of employees refers to the income of border, seasonal
and other short-term workers who are employed in an economy where
they are not resident and of residents employed by nonresident entities
• Workers remittances are current transfers by migrants who are
employed in new economies and considered residents there.
• For many economies, remittances represent a sizeable and stable
source of funds that sometimes exceed official aid or financial inflows
from foreign direct investment and have the potential to help cushion
domestic economy and reduce trade deficits.
• Remittances may have a significant impact on poverty reduction and
can finance economic growth in receiving economies.
• The international remittances has increased both in volumes as well as
significance upon the recipients’ economies.
Summary on Thai workers abroad
Summary on Thai workers aboard
Total number Thai workers abroad by Occupation (Flow)
Occupation
2005
2006
2007
2008
Legislators, Senior Officials And Managers
1,371
1,569
1,919
2,148
Professionals
3,162
3,854
4,146
4,392
Technicians And Associate Professionals
3,136
4,189
5,144
5,932
Clerks
1,119
1,293
1,758
1,541
Service Workers And Shop And Market Sales Workers
12,290
12,956
13,321
13,662
318
514
4,241
5,678
Craft And Related Trades Workers
44,631
54,934
54,923
59,661
Plant And Machine Operators And Assemblers
35,615
38,558
36,627
31,634
Elementary Occupations
38,025
42,979
39,838
37,204
139,667
160,846
161,917
161,852
Skilled Agricultural And Fishery Workers
Total
Sources : Overseas Employment Administration Office, Department of Employment, Ministry of Labor
Summary on Thai workers aboard
Total number Thai workers abroad by country (Flow)
Country
2005
2006
2007
2008
Taiwan
57,663
62,068
52,193
45,088
Republic of Korea
14,232
16,456
13,287
15,730
Republic of Singapore
11,780
15,115
16,271
14,934
State of Israel
8,746
9,312
10,903
6,200
State of Qatar
3,139
7,516
5,762
10,722
Japan
6,585
7,218
8,002
7,555
Negara Brunei Darussalam
5,216
5,141
4,143
3,349
United Arab Emirates
2,127
3,624
9,850
12,973
Malaysia
4,915
3,418
3,432
3,476
Others
25,264
30,978
38,074
41,825
139,667
160,846
161,917
161,852
Total
Sources : Overseas Employment Administration Office, Department of Employment, Ministry of Labor
The remaining outstanding of Thai worker abroad is estimated by the Ministry
of Labor, using survey from Labor oversea offices (2007), the total stock of
Thai workers stood around 450,000 persons
Summary on Migrant Workers in Thailand
Migrant Workers in Thailand
• There are 3 major categories of migrant workers in
Thailand
category
Data source
Outstanding in
2008 (persons)
Aliens who receive legal
work permits (both high
skills, professional and some
labor workers)
Administrative records, the Ministry of
Labor (both flows & stock data)
Approx. 200,000
Low skilled migrant workers
with ‘illegal entry’ but later
on ‘registered’ with the
Ministry of Labor
Registration records, the Ministry of
Labor (stock)
Approx. 560,000
Low skilled migrant workers
with ‘illegal entry’ and no
registration
Data not available, some estimates are
proxy from many independent studies
Est. 1,200,000
Total estimate: approx. 2,000,000 migrant workers
Summary on Migrant workers: high skills, professional
Number of Aliens Who Received Work Permits During 2000 - 2008 (Outstanding)
Country
2000
2001
2002
2003
2004
2005
2006
2007
2008
Total
76,796
59,978
71,165
86,205
106,988
135,984
154,220
169,728
201,097
Japan
13,355
14,144
13,677
16,738
19,467
21,098
22,976
24,312
28,941
British
5,694
5,166
5,150
6,216
7,392
8,485
9,494
10,150
11,923
American
4,683
4,185
4,099
4,827
5,541
6,429
7,234
7,838
9,505
Chinese
5,890
5,458
4,883
6,008
6,520
9,573
11,268
11,299
13,298
Indian
5,083
5,555
5,144
5,917
6,752
8,263
9,296
9,704
10,727
Filippino
2,725
2,777
2,337
2,819
3,501
4,709
5,916
7,091
8,740
Australian
2,106
1,916
2,090
2,399
2,723
3,125
3,405
3,597
4,230
Myanmar
na.
na.
4,559
5,247
6,117
7,818
8,664
7,389
8,225
37,260
20,777
29,226
36,034
48,975
66,484
75,967
88,348
105,508
Others
Sources : Office of Foreign Workers Administration, Department of Employment, Ministry of Labor
Summary on Migrant workers: high skills, professional
Aliens Who Received Work Permits in the Whole Kingdom by Occupation (Outstanding)
Occupation
2002
2003
2004
2005
2006
2007
2008
Legislators, Senior Officials And Managers
33,797
42,438
50,395
59,435
67,993
73,733
85,894
Professionals
11,851
14,221
17,069
20,339
23,809
26,906
32,790
Technicians And Associate Professionals
4,147
5,292
6,645
7,431
8,404
9,226
11,178
763
839
1,025
1,149
1,236
1,663
2,121
Service Workers And Shop And Market Sales Workers
2,645
3,403
4,624
5,831
6,249
7,001
8,172
Skilled Agricultural And Fishery Workers
1,339
1,834
2,970
6,493
6,833
6,818
6,816
Craft And Related Trades Workers
2,002
2,160
2,540
3,130
3,685
4,054
4,615
710
875
1,105
1,360
1,407
1,569
1,902
Elementary Occupations
7,869
10,032
16,237
26,970
31,183
35,641
44,628
Occupations Unidentifiable
5,914
4,958
4,169
3,631
3,175
2,766
2,550
128
153
209
215
246
351
431
71,165
86,205
106,988
135,984
154,220
169,728
201,097
Clerks
Plant And Machine Operators And Assemblers
Training
Total
Sources : Office of Foreign Workers Administration, Department of Employment, Ministry of Labor
Summary on Migrant workers: high skills, professional
Total number of Migrant workers who received work permits (Flow)
2005
2006
2007
2008
Legislators, Senior Officials and Managers
21,984
22,400
21,841
21,976
Professionals
13,102
14,423
14,814
14,559
5,813
6,056
7,034
6,638
575
505
1,025
1,180
Service Workers and Shop and Market Sales Workers
2,598
2,221
2,484
2,714
Skilled Agricultural and Fishery Workers
4,620
2,745
2,029
1,810
Craft and Related Trades Workers
1,500
2,226
2,304
2,102
903
1,032
997
1,108
17,079
16,392
17,703
19,103
Occupations Unidentifiable
348
490
780
601
Training
127
137
43
11
68,649
68,627
71,054
71,802
Technicians and Associate Professionals
Clerks
Plant and Machine Operators and Assemblers
Elementary Occupations
Total
Sources : Office of Foreign Workers Administration, Department of Employment, Ministry of Labor
Illegal entry, low skilled migrant workers:
(both regis. + non regis.)
• Unlike the high skill component, the
Low skilled migrant workers in
Thailand tend to work in high labor
intensive industries such as fishery,
agriculture, textile, miner, construction
and domestic helpers
• Large concentration in the Bangkok and
nearby provincial areas. The North
(textile) The South (fishery)
• Can shift from industry to industry
depending upon current demands
• Some studies indicate that their
earnings are below Thai minimum wage
• Do not rely on bank channel when
remitting their incomes back to their
families
Methods/channels of remittances chosen by
migrant workers in Thailand (low skilled)
• Through friends/relatives/individual dealers: dealers pick up
the money at factory site, with average fee 3-10% of
remitted amount or 1.5-3.3 USD per transactions
• Local bank transfer to designated domestic accounts
pertaining to friends/relatives/individual dealers and then
the dealers deliver the migrants' families fund to the family
• Migrants personally bring the physical cash home upon
their return or temporary home visit
Source: The Bank of Thailand Regional Office survey on local establishments (2008)
Current data source, compilation
and data constraints
CE and WR compilation
Credit
Debit
Compensation of
employees
ITRS under ‘Income’
category
some from ITRS, data
reported under ‘other
services’ category
Workers’ remittances
ITRS, reported as part of
under ‘compensation of
employees’ and ‘other
sector transfer/current
transfer’
ITRS, can not be
distinguished from ‘other
services’ and ‘other sector
transfer/current transfer’
Concerns & data constraints
• Transactions data from ITRS are recorded on cash basis and
netting out rather than on ‘accrued’ and ‘gross’ basis and
hence lead to underestimation of gross data.
• Remittance flows data on debit side are included in ‘other
services’ category and hence could not explicitly identified
due to limitation of the ITRS report forms
• due to limitation on data source and lack of additional data to
distinguish between CE and WR on credit side
Concerns & data constraints
Compensation of Employees and other private transfers :
Thailand 2000 - 2008
Millions of USD
6000
4,899.2
5000
4000
3000
1,898.4
2000
1000
0
491.8
2000
2001
2002
2003
Compensation of employees receipts
Other sector transfer payments
2004
2005
2006
2007
Other sector transfer receipts
2008
•ITRS cannot separate
short-term and long-term
work contract. This
hence led to the
constraint on the input
that we could not
explicitly separate
‘workers’ remittance’
from ‘compensation of
employee’.
•Lack of information on
total number of workers
and average earnings and
wages of workers with
‘illegal entries’
Estimation on compensation of
employees and workers’ remittance
in Thailand
Need new method of estimation:
• Data model with supplementary information from
other secondary sources
Source
Data used
Ministry of Labor (Dept of Oversea employment, Thai
labor oversea offices etc.)
Total # of workers (registered) (flow + remaining stocks)
including estimates of Thai workers abroad (flow &
stock), with work duration (i.e., less than 1 yr, 1-2 yr, 23 yr and more than 3 yrs)
Thailand Development Research Institution (TDRI)
Thai labor market outlook, independent studies on
remittances
National Statistic Office (NSO)
Related data on workers, employments by local
establishments etc.
International Labor Organization (ILO)
Data on low skilled migrant workers, estimates on
remittances and in-kind (independent studies in 2008 via
surveys and interview migrant HHs along border area)
BOT’s Regional Branch Survey on local establishments
(2008)
Ad-hoc exercise, capture data on migrant worker
incomes, methods/channels of remittances, sector of
employments etc.
‘New estimation’ on compensation of employees
: Thai workers abroad
Compensation of employees
Number of workers(flow) <1 year and 1 year up
by occupation & country-yearly
X
Average earning
(GDP per capita or minimum
wage by occupation &
country) per year
=
Gross
Earnings/Compensation
Estimation on workers’ remittance
: Thai workers abroad
Workers’ remittance
Number of Thai workers
abroad (stock) by occupation &
country end of year
-
Number of Thai workers abroad
by occupation & country (flow)
1 year up
X
Average earning (GDP per capita
or minimum wage by occupation &
country
Expenditure from
domestic saving rate by
country (ongoing work)
Remittances of
residents
In kind 5% of cash
remittances
Estimation on compensation of employees
: Migrant workers in Thailand
Compensation of employees
Number of high skill workers (stock) < 1 year
by occupation & country - monthly
+
Number of high skill workers (flow)
1 year up
by occupation & country - monthly
X
Average earning per capita
by occupation
per month
=
Gross Earnings/Compensation
Estimation on workers’ remittance
: migrant workers in Thailand
Workers’ remittance : 3 components
Number of high skill
workers (stock) 1 year up
Number of illegal workers
registered (stock)
-
-
Number of high skill
workers (flow) 1 year up
Number of illegal workers
registered (flow)1 year up
X
X
Average earning
Average earning
Estimate expenditure
30% of gross earnings
70% for
remittances
-
Expenditure survey
from regional office
70% for cash remittances
(in kind 30%) (ref. ILO &
Mahidol U. THA research)
Estimation on number of
illegal workers non registered
(stock)
X
Average earning
Expenditure survey
from regional office
70% for remittances (in kind
30%) (ref. ILO & Mahidol
U.THA research)
Thai workers abroad: CE (new estimate)
$1,600
$1,400
million USD
$1,200
$1,000
$800
$600
$400
$200
$0
12005
Taiwan
South Korea
2006
2
Japan
Year
Singapore
32007
Middle East and Africa
2008
4
Europe, USA, Australia and others
Migrant workers in Thailand CE: High skill, professional
million USD
$2,000.0
$1,500.0
$1,000.0
$500.0
$0.0
1 2006
22007
3
2008
year
Japan
China
UK
others
Migrant workers in Thailand CE: low skilled
$1,400.00
$1,200.00
million USD
$1,000.00
$800.00
$600.00
$400.00
$200.00
$0.00
1 2006
2 2007year
Myanmars
Laos
3
2008
Cambodia
others
Migrant Workers in Thailand: WR Total
$1,000.00
million USD
$800.00
$600.00
$400.00
$200.00
$0.00
12006
2 2007
year
WR (skilled + professional)
32008
WR (low skilled)
Future plans
Future Plans
• Study and use data models to find proxy to calculate remittances: e.g., more
details on …
•Expenditures/savings/remittance pattern of high income Ex-Pat workers
•# of independent family members
•Migrant workers’ expenditures
•Thai workers’ expenditures abroad
• Utilize households survey to capture more parameters involving remittances
(e.g., HH savings, remittances behavior, both cash and in-kinds)
• Other supplemental surveys: labor surveys at airport, foreign labor surveys
(regional)