Agency. Rising inflation in Laos has led to a decline in the living standards of citizens and a major change in the labor market, according to a World Bank survey. Citizens are getting attracted towards self-employment, while many workers are migrating abroad to earn a living.
According to the latest World Bank survey conducted from January to February 2025, the employment rate in Laos is gradually increasing. The percentage of people working in January 2025 reached 97.1 percent, up from 94.4 percent in 2024 and 88.2 percent in May 2022.
According to the report, the inflation rate of Laos is decreasing. Inflation fell to 15.5 per cent in January 2025 from 16.9 per cent in December 2024. By April, the rate had dropped to 11.1 per cent.
However, due to the continuous price rise in the last few years, many families are still financially weak. Many citizens continue to seek employment abroad, where they hope to earn a relatively good income.
High inflation is having a profound impact, especially in low-income households. Many families have started saving, selling animals or taking loans as essential commodities, including food, have become expensive. As a result, some families have started cutting health and education expenses, which has increased the chances of children from poor families being out of school.
Laos’s central bank has said it will take proactive measures to deal with economic and financial challenges, with the goal of achieving a single-digit inflation rate by 2025.
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