An Examination of Gaps and Policy Options to Promote Human Capital Development and Labor Force Participation of Older Persons

Thailand’s transition into a complete aged society poses pressing challenges for the labor force participation of older persons. Despite rising life expectancy and a relatively high labor force participation rate among those aged 60 and above, many older persons continue to work out of necessity due to inadequate pension coverage and low personal savings. Older workers are often concentrated in low-skilled occupations, with limited access to training or higher-skilled job opportunities, partly due to inefficient retirement policies and fragmented social protection systems.

This paper identifies three key gaps: financial necessity driving employment of older workers, limited occupational choices, and low skill levels among older workers. These are linked to bottlenecks in pension adequacy, employment constraints, and ineffective training systems. Drawing

on a descriptive quantitative analysis, literature review, and consultations with experts and representatives from various organizations, the report proposes reforms such as establishing a multi-tier pension system, promoting flexible retirement policies, and
enhancing skill development programs, which are specified for older persons. These measures aim to strengthen human capital development among older persons, enabling them to remain productive and better integrated into Thailand’s evolving economic and social landscape.