Relationships between Labour Demand and Resource Factors for Textile and Garment Industry in Thailand

This article aims to forecast and compare labor demand in textile industry represented by fiber manufacturing companies (ISIC CODE 13111) and in garment industry represented by the manufacturer of work wear (ISIC CODE 14111) in Thailand. Secondary data were acquired from the Department of Industrial Works where registered companies submitted their essential data and obtained the approval permit in doing business during 2015. Complete data from 494 textile companies and 656 garment companies are implemented in Multiple Regression Analysis. This research defined eight independent variables: Land capital (X1), Buildings capital (X2), Machinery capital (X3), Working capital (X4), Factory area (X5), Building area (X6), Horsepower (X7), and Type of manufacturer (X8). The results from the study revealed that 63.09% of labor demand variation for textile manufacturers can be explained by Y = 28.6246 + 0.0180X7 0.0004 X5 + 0.0081X6 + 0.0004X4 0.0002X3 while 51.50% of the labor demand variation for garment manufacturers can be explained by Y = 116.86 + 0.006X2+ 0.004X5 109.748X8 + 0.008X6 + 0.040X7 + 0.001X4.