Thailand faces a critical employment crisis with expected 500,000 layoffs as manufacturing contracts, factory closures outpace openings for the first time in 10 quarters, and unemployment rises to 0.9%. Key sectors including steel (27-28% capacity utilisation), textiles, and auto parts are under severe pressure from Chinese import dumping and weak domestic demand. The FTI proposes doubling government procurement for Thai products to 200 billion baht with 40% local content to protect SME supply chains and employment—action needed this year as relief programmes appear insufficient.