KUALA LUMPUR - The Lao government has announced a five year plan to improve worker skills and expand employment opportunities domestically and overseas.

Prime Minister, Sonexay Siphandone outlined the strategy in a report presented to the National Party Congress, last Tuesday.

Under the plan, the government aims to upskill about 650,000 workers and create job opportunities for 411,000 people over the next five years, exceeding previous targets.

The initiative is intended to address long-standing workforce issues, including weak skills, labour migration and low incomes.

Over the past five years, joint public and private programmes provided skills training to nearly 160,000 young people, well above initial targets.

During the same period, more than 464,000 people secured jobs, about 18% higher than expected.

To help workers cope with rising living costs, the government raised the monthly minimum wage to 2.5 million kip in 2024.

Employers were also instructed to provide allowances to ensure workers earned at least the minimum monthly income.

Despite these measures, many Lao workers continue to seek jobs in neighbouring countries as wages remain below the cost of living.

High inflation has pushed more people into self-employment or overseas work, particularly in Thailand, South Korea and Japan.

The government is expanding vocational and dual-training programmes to address labour shortages in key sectors.

Priority areas include vehicle and machinery repair, agricultural machinery, electrical technology and manufacturing related skills.

Authorities have also strengthened worker protection through an International Labour Organisation supported project to curb discrimination, harassment and child labour.

According to the Ministry of Labour and Social Welfare, from 2021 to August 2025, more than 350,000 Lao nationals worked overseas, 

Migrant workers sent home an estimated USD366 million in remittances in the first six months of this year, the ministry said.