thailand’s experiences on compilation of compensation to employee and workers’ remittance...
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Thailand’s Experiences on Compilation of Compensation to Employee and Workers’
Remittance statistics
12 June 2009
The Bank of Thailand
Topics
• 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
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
Skilled Agricultural And Fishery Workers 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
Total139,66
7160,84
6161,91
7161,85
2
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
Total 139,667 160,846 161,917 161,852
Sources : Overseas Employment Administration Office, Department of Employment, Ministry of Labor
Summary on Thai workers aboard
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
- 2000 200Number of Aliens Who Received Work Permits During 8 (Outstanding)
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total 76,796 59,978 71,165 86,205 106,988 135,984154,22
0169,72
8201,09
7
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
Others 37,260 20,777 29,226 36,034 48,975 66,484 75,967 88,348105,50
8
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
Clerks 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
Plant And Machine Operators And Assemblers 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
Training 128 153 209 215 246 351 431
Total 71,165 86,205 106,988 135,984 154,220 169,728 201,097
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
Technicians and Associate Professionals 5,813 6,056 7,034 6,638
Clerks 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
Plant and Machine Operators and Assemblers 903 1,032 997 1,108
Elementary Occupations 17,079 16,392 17,703 19,103
Occupations Unidentifiable 348 490 780 601
Training 127 137 43 11
Total 68,649 68,627 71,054 71,802
Sources : Office of Foreign Workers Administration, Department of Employment, Ministry of Labor
Summary on Migrant workers: high skills, professional
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 bymigrant 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
Compensation of Employees and other private transfers : Thailand 2000 -
2008
0
1000
2000
3000
4000
5000
6000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Compensation of employees receipts Other sector transfer receipts
Other sector transfer payments
Millions of USD
4,899.2
1,898.4
491.8
Concerns & data constraints •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, 2-3 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
Number of workers(flow) <1 year and 1 year up
by occupation & country-yearly
Compensation of employees
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
Number of high skill workers (flow) 1 year up
by occupation & country - monthly
Number of high skill workers (stock) < 1 year
by occupation & country - monthly
Compensation of employees
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 high skill workers (flow) 1 year up
X
Average earning
Number of illegal workers registered (stock)
Number of illegal workers registered
(flow)1 year up
Average earning
Estimation on number of illegal workers non registered (stock)
Average earning
-
X
X
Estimate expenditure 30% of gross earnings
Expenditure survey from regional office 70% for remittances (in
kind 30%) (ref. ILO & Mahidol U.THA
research)70% for cash
remittances (in kind 30%) (ref. ILO & Mahidol
U. THA research)
70% for remittances
-Expenditure survey from regional office
-
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
1 2 3 4
millio
n USD
Year
Thai workers abroad: CE (new estimate)
Taiwan South Korea Japan Singapore Middle East and Africa Europe, USA, Australia and others
2005 2006 2007 2008
$0.0
$500.0
$1,000.0
$1,500.0
$2,000.0
1 2 3
year
millio
n USD
Migrant workers in Thailand CE: High skill, professional
Japan China UK others
2006 2007 2008
$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
$1,400.00
1 2 3
millio
n USD
year
Migrant workers in Thailand CE: low skilled
Myanmars Laos Cambodia others
2006 2007 2008
$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
1 2 3
millio
n USD
year
Migrant Workers in Thailand: WR Total
WR (skilled + professional) WR (low skilled)
2006 2007 2008
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)
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