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The figure is worrisome for any government. Apart from the large number of new graduates, small- and medium-sized enterprises plan to reduce their staff by 100,000. The Federation of Thai Industries forecasts that 1 to 1.5 million people will be unemployed.

This is the challenge that the Abhisit government will have to face. And these workers are impatient.

The business sector has given the Abhisit government three months to prove its worth. The prime minister seems to realise the scale of the challenge. He is trying to create unity within the Democrat Party and the coalition to create stability which will lead to effective solutions to the economic problems.

However, while the Abhisit Cabinet line-up has caused internal frictions, outside factor are not supportive either, thanks to the global economic recession and the efforts of some to undermine the credibility of the Thai government.

The immediate challenge for the government is to save jobs. Some industries might have to be closed down because they are no longer competitive. But the government and industry must help train and re-train the workforce for other more promising sectors.

The authorities should also find ways to help new graduates adapt to labour market needs, while soft loans for emerging industries should be encouraged. Otherwise, the government's stability will be seriously tested. With a strong performance behind it, it would be impossible for even the cleverest opposition to bring down the government.