section_path: Economy/Informal economy
section_name: Informal economy
paragraph_text: Informal economy
  
  Thailand has a diverse and robust informal labour sector—in 2012, it was estimated that informal workers comprised 62.6% of the Thai workforce. The Ministry of Labour defines informal workers to be individuals who work in informal economies and do not have employee status under a given country's Labour Protection Act (LPA). The informal sector in Thailand has grown significantly over the past 60 years over the course of Thailand's gradual transition from an agriculture-based economy to becoming more industrialised and service-oriented. Between 1993 and 1995, ten per cent of the Thai labour force moved from the agricultural sector to urban and industrial jobs, especially in the manufacturing sector. It is estimated that between 1988 and 1995, the number of factory workers in the country doubled from two to four million, as Thailand's GDP tripled. While the Asian Financial Crisis that followed in 1997 hit the Thai economy hard, the industrial sector continued to expand under widespread deregulation, as Thailand was mandated to adopt a range of structural adjustment reforms upon receiving funding from the IMF and World Bank. These reforms implemented an agenda of increased privatisation and trade liberalisation in the country, and decreased federal subsidisation of public goods and utilities, agricultural price supports, and regulations on fair wages and labour conditions. These changes put further pressure on the agricultural sector, and prompted continued migration from the rural countryside to the growing cities. Many migrant farmers found work in Thailand's growing manufacturing industry, and took jobs in sweatshops and factories with few labour regulations and often exploitative conditions.
  
  Those that could not find formal factory work, including illegal migrants and the families of rural Thai migrants that followed their relatives to the urban centres, turned to the informal sector to provide the extra support needed for survival—under the widespread regulation imposed by the structural adjustment programs, one family member working in a factory or sweatshop made very little. Scholars argue that the economic consequences and social costs of Thailand's labour reforms in the wake of the 1997 Asian Financial Crisis fell on individuals and families rather than the state: as the country's labour market became increasingly deregulated, the burden and responsibility of providing an adequate livelihood shifted from employers and the state to the workers themselves, whose families had to find jobs in the informal sector to make up for the losses and subsidise the wages being made by their relatives in the formal sector. The weight of these economic changes hit migrants and the urban poor especially hard, and the informal sector expanded rapidly as a result.
  
  Today, informal labour in Thailand is typically broken down into three main groups: subcontracted/self employed/home-based workers, service workers (including those that are employed in restaurants, as street vendors, masseuses, taxi drivers, and as domestic workers), and agricultural workers. Not included in these categories are those that work in entertainment, nightlife, and the sex industry. Individuals employed in these facets of the informal labour sector face additional vulnerabilities, including recruitment into circles of sexual exploitation and human trafficking. A 2012 study found that 64% of informal workers had not completed education beyond primary school. Many informal workers are also migrants, only some of which have legal status in the country. Because the informal labour sector is not recognised under the Labour Protection Act (LPA), informal workers are much more vulnerable to exploitation and unsafe working conditions. While some Thai labour laws provide minimal protections to domestic and agricultural workers, they are often weak and difficult to enforce. Furthermore, Thai social security policies fail to protect against the risks many informal workers face, including workplace accidents and compensation as well as unemployment and retirement insurance. Many informal workers are not legally contracted for their employment, and many do not make a living wage. Tens of thousands of migrants from neighboring countries face exploitation in a few industries, especially in fishing where slave-like conditions have been reported.