REINTEGRATING THE ELDERLY INTO THAILAND’S WORKFORCE: STRATEGIES FOR ECONOMIC CONTRIBUTION IN AN AGED SOCIETY

Abstract

This study aims to 1) Examines the labour market mechanisms for older workers under the influence of demographic, economic, social, health, and policy factors, and 2) Synthesizes the findings within a “Jobs-Skills-Costs-Policy” framework to generate concrete policy recommendations. Using a mixed-methods design, the research focuses on Lampang province as a case study. Data were collected from 150 establishments through structured questionnaires, complemented by in-depth interviews with experts, and a survey of 500 elderly people, analysed using chi-square inferential statistics at the 0.05 significance level. On the demand side, employers’ hiring decisions are primarily driven by psychosocial competencies. They place greater emphasis on mental health (mean = 8.47) and social health (mean = 8.37) than on physical limitations. Employers also exhibit a strong tendency to hire the elderly without existing income (82.4%) to reduce economic dependence. However, the prevailing structure of domestic and service work leads employers to prefer older female workers and those with primary education (18%) to minimise labour costs. On the supply side, age and gender show no statistically significant relationship with the desire to re-enter the labour market (λ² = 3.446 and 0.164, respectively). In contrast, human capital and economic stability emerge as key determinants. There is a strong, statistically significant association between willingness to work and educational attainment (λ² = 31.962) and between willingness to work and sources of income (λ² = 40.487). Overall, the labour market for older workers is driven by employers’ cost-control strategies and their valuation of emotional and social skills, while older persons’ readiness to work is shaped by their human capital and economic conditions. These findings suggest that strategies aimed at extending working lives should shift from a focus on “raising the retirement age” toward “redesigning the labour market” to prioritise and leverage the psychosocial competencies of older workers.