The research report said that in the first quarter of 2006 Thailand's economy had been plagued by risk factors, among them the dissolution of Parliament, the political crisis, spiralling oil prices, the baht reaching record highs against the US dollar and a surging inflation rate, which rose to 5.7 per cent in the first quarter of this year, compared to 2.8 per cent in the same period last year.

In April, the inflation rate soared to 6 per cent.

KResearch also believes that the Thai economy is in 2006 likely to see a slowdown due to spikes in oil prices, rising interest rates and sluggish investment and consumption.

Amid this spate of economic risk factors a number of businesses have fine-tuned their management strategies to retain their competitiveness. Lay-offs are among their tactics, which will undoubtedly cause problems for labourers.

In fact, a large number of Thai labourers, 62 per cent, are classified in the "informal sector" of employment, "casual labourers" who are denied health-insurance coverage and other social-welfare benefits that could otherwise provide them with some security. As a result, their quality of life and job efficiency are relatively low. This is seen as a pressing issue that needs to be tackled by the government to give this key driving force for the economy a better life.

Under these circumstances, if unemployment rises, casual workers will suffer greatly.

Thus improved work guarantees for them would both solve social problems and improve efficiency.

KResearch proposes inclusion of casual labourers in the social-security programme with encouragement for them to form associations and the introduction of on-the-job safety measures, provident funds and training centres where they can learn new skills.

It says informal labourers' contributions to the Social Security Fund or provident funds must not be too high and the government should set aside a part of its budget as a "seed fund" to subsidise the new set-up, which should eventually be self-supporting like the Social Security Fund, whose capital is enormous.

While formal workers celebrate International Labour Day happily, informal labourers struggle to make ends meet, whereas as employees like any others they deserve respect, a better quality of life, and sustainable security, the report says.