Economic woes in Laos drive workers overseas

The Star

22-04-2025

Many Lao workers are opting to work in other countries where they can earn more. - Vientiane Times/ANN
VIENTIANE: Continuing financial hardship is the main reason why skilled Lao workers are seeking jobs in other countries, even though the government raised the minimum wage last year in a bid to retain workers.
However, the rising cost of living and paltry wages mean that workers struggle to earn a living and make ends meet.
Speaking at the annual meeting of the labour and social welfare sector in Vientiane, Deputy Minister of Labour and Social Welfare, hongsaysack Inthalavong, said that for several years the ministry has worked to improve the skills of workers in Laos to meet the needs of the evolving job market.
But even after vocational training, many workers do not want jobs in Laos because the wages offered are so low and do not meet their daily needs, he added.
'We are concerned that Laos may face a shortage of skilled workers, especially as some business operators refuse to pay the increased minimum wage, which is the main reason that some skilled workers look for jobs in other countries,' Phongsaysack said.
'Our ministry has a policy to promote employment and job creation, and to ensure that workers are qualified to fill jobs that are in demand in both Laos and other countries,' he added.
'Unfortunately, some business operators still believe that Lao workers are poorly skilled and incompetent, even as they are in strong demand in the Republic of Korea and Thailand.'
But most of them are skilled and can earn more money in Thailand and Korea, where the minimum wage is higher than in Laos, he added.
In the meantime, the government is working to improve skill levels and social welfare at both the central and local levels and to improve the quality of Lao workers in line with the needs of today's job market.
This means enabling independent workers to become strong entrepreneurs and ensuring that workers have worthwhile and fair jobs.
It is also essential to safeguard the rights and interests of workers and employers through national and international labour standards and to strengthen the social security system, Phongsaysack said.
In the past five years, 369,345 workers have been recruited for jobs in Laos and other countries, meaning that the unemployment rate has not risen above two percent each year. - Vientiane Times/ANN