Covid-19 and its impact on informal sector workers: a case study of Thailand

Abstract

ABSTRACT Informal sector (IS) workers comprise a significant proportion of the Thai work force and contribute significantly to the Thai economy. Nevertheless, IS workers have little social protection and are economically marginalised, making them especially vulnerable to the effects of the government’s shutdown of the Thai economy to address the COVID-19 pandemic. Using a sample of 384 IS workers, researchers found that IS workers experienced dramatic decreases in their monthly income, although the reduction varied across occupation and geographic region. To compensate for reduced income, IS workers tapped their savings and increased their debt. A Thai government programme to provide income support for workers during the shutdown reached less than half of IS workers. Social workers can help provide better social protection to IS workers from pandemic-amplified social exclusion.