Asia-Pacific Labour Market Insights
COVID-19 containment measures heighten wage inequality in Thailand and Viet Nam
Containment measures during 2020 to combat the spread of the COVID-19 pandemic have led to heightened inequality, as evidenced by emerging trends in key wage indicators in Thailand and Viet Nam.

Highlights include:
- In both Thailand and Viet Nam, average nominal monthly wage levels decreased in the second quarter 2020 before rebounding in the third quarter. The magnitude of the contraction, however, varied across different wage groups.
- Wage inequality, as measured by the ratio between those in the top and bottom 10 per cent of earners, trended upwards during the COVID-19 crisis in 2020.
- Heighted wage inequality is striking in critical sectors particularly vulnerable during the COVID-19 crisis.
- The COVID-19 crisis may be reversing progress in reducing low-paid work.
Conclusions and policy recommendations include:
- Wage subsidies targeting low-paid workers in vulnerable sectors would help to protect some of the most vulnerable workers.
- A renewed focus on minimum wage setting and ensuring compliance would help to offset the alarming expansion of low paid work particularly in Viet Nam and assist those at the bottom of the wage ladder.
- Efforts towards an even and balanced recovery could focus on youth and workers with lower educational qualifications.
- Active labour market policies such as skills training initiatives and job search assistance would help boost prospects of higher paid employment.
For more information:
Phu HuynhTechnical Specialist, Employment & Decent Work
huynh@ilo.org