Thailand’s human capital at a crossroads, warns new UNICEF–NESDC report

The Human Capital Development in Thailand: An Examination of Gaps, Bottlenecks, and Policy Options report, jointly conducted by NESDC, UNICEF and Thailand’s Development Research Institute (TDRI), finds that while Thailand has made notable strides in expanding access to education and basic services, a significant share of children and young people are still not acquiring the skills, knowledge and health they need to reach their full potential and grow as healthy and productive adults.

At the launch event of the report co-hosted by NESDC, UNICEF and the European Union in Bangkok, Kyungsun Kim, UNICEF Representative for Thailand, emphasised the importance of investing in the next generation. “Thailand stands at a pivotal moment in addressing the long-term challenges of a fast ageing and declining population while also, importantly, reaping the potential of the longevity dividend and 'silver economy'. This ambition must be matched by investment in people, especially children and youth.”

The report highlights that malnutrition continues to be a major barrier for young children in Thailand, with all forms of malnutrition, including stunting, wasting and overweight, at alarming levels.

In addition, only 3 in 4 children aged 24 to 59 months are developmentally on track, with children from low-income families, those not enrolled in early childhood education, and those without access to child benefits being especially at risk.

At school age, Thailand has achieved near-universal access to compulsory education, yet quality remains a major concern.

Only 42 % of Grade 2 students possess age-appropriate literacy and numeracy skills. Moreover, national results from the 2022 Programme for International Student Assessment (PISA) point to persistent underperformance in math, science and reading skills. Children in rural areas, non-Thai speakers, and those from the poorest households face greater barriers to learning.

These challenges carry over into later life. While most young people finish compulsory education, a significant number of children and young people don't continue to upper-secondary education.

Among Thais aged 25–34, only 59 % have completed upper-secondary education. The dropout rate is particularly high among young men, youth with disabilities, and those from poor or non-Thai-speaking households.

For those who enter the workforce, the situation is also troubling. Less than 3 % of employed adults in Thailand have received further training beyond formal education. In addition, less than 12 % express a desire for training. Even among those who do receive training, the benefits are often limited, with only 39 % finding employment after completing training courses.

The report also noted a mismatch between education and employment. Over half of the workforce has qualifications that do not align with the demands of their jobs, wasting valuable potential and reducing overall productivity.

Meanwhile, around 12.5 % of young people aged 15–24 in Thailand are not in education, employment or training (NEET). Young people from low-income families and those with disabilities are particularly vulnerable.

The report identifies several bottlenecks undermining Thailand’s human capital development. These include limited social assistance for low-income families, inadequate support for vulnerable groups such as people with disabilities and non-Thai speakers, inefficient resource allocation in education, misalignment between education, skilling programmes and labour market needs, and widespread psycho-social barriers such as low motivation, poor mental health, and lack of support in learning environments.

Speaking at the launch event, Danucha Pichayanan, Secretary General of the NESDC, said,” Systematic investment in human capital development is not merely a strategically sound long-term investment; it is an essential investment for propelling the nation towards sustainable growth.”

Also speaking at the launch event, David Daly, Ambassador of the European Union to Thailand, said in his remarks, “investing in human capital is not just important, it is essential for sustaining growth, reducing inequality, and building resilience to future shocks.”

The report outlines key recommendations, including expanding inclusive social protection, tailoring education and training to meet diverse learner needs, reforming resource allocation to promote equity and efficiency, aligning curricula with labour market demands, and increasing investment in mental health and learner well-being.

“The evidence is clear, and the solutions are within reach. What Thailand needs now is bold, inclusive policy action that puts children and young people at the centre of social and economic policies.” Kim added.