RENEWED DEMAND FOR WORKERS SIGNALS RECOVERY

       Northeastern Thailand is gearing up for economic recovery, as reflected in recent demand for 10,000-20,000 new factory workers in the region, Somchai Kijmeratsameeyothin, chairman of the Federation of Thai Industries chapter for that region, said yesterday.
       He told a seminar here entitled "Tackling the Global Crisis: Thailand's Future", held in commemoration of the 41st anniversary of the central bank's northeastern office, that foreign orders for electronics, garments and textiles had rebounded in the third quarter.
       "The economic crisis has bottomed out in the Northeast. Many manufacturers laid off workers in the first quarter but have rehired them to cope with the increasing orders. The region should show improvement in the third and fourth quarters," Somchai said.
       Still, he warned the resumption of orders might not hold steady and that manufacturers needed to be prudent in their hiring.
       Importantly, they must lower costs, particularly for logistics. Industrial manufacturers are advised to band together for long-term survival, because then if orders exceed capacity, the larger players can pass on some of them to smaller players within the group.
       Bank of Thailand (BOT) Governor Tarisa Watanagase told the seminar that the Kingdom's economy remained fragile even though the crisis had touched bottom.
       She said while the economy had shown signs of recovery, with improvements in industrial production and domestic spending and a smaller contraction in private investment, sustainability depended on both internal and external factors.
       "The Thai and the global economies remain volatile. Private companies must strengthen risk management and emphasise sufficiency," Tarisa said.
       The Bank of Thailand expects the Thai economy to grow 3-5 per cent next year, with inflation at 1-2.5 per cent.
       However, much depends on the recovery in the US, Europe and Japan, which together account for 32 per cent of Thailand's exports.
       The Kasikorn Research Centre said employment figures had been improving each month since June, while the National Statistical Office said the unemployment rate fell from 1.4 per cent in June to 1.2 per cent in July.