By Ma Ma - Aug 11, 2025
Privately-owned small businesses are facing increasing difficulty in hiring workers due to labour shortages, according to business owners in Yangon.
Business owners say the current situation marked by surging commodity prices and rising operational costs has made it challenging to offer competitive wages. As a result, workers are opting for jobs that offer higher pay and overtime benefits, while small businesses are left unable to match such conditions. The situation has been compounded by ongoing military conscription, which has further depleted the available labour pool.
"Right now, we pay 10,000 kyats per day. But it’s just not enough anymore. One shop worker told me his wife works at a garment factory and earns over 500,000 kyats with overtime. For us, even paying 10,000 is hard. Sales are down, but we still have to cover rent, licenses, and wages. We’re left with nothing after all that. If staff leave, the business can’t run—but we can’t afford to pay more," a shop owner said.
Although the Ministry of Labour has set a minimum daily wage of 4,800 kyats along with a 2,000 kyat subsidy for businesses employing over 10 workers, business owners say these rates account for only about a third of actual daily living costs.
"The real issue is rising prices. Small shops don’t operate at full capacity every day. Now that sales are down, it’s even harder. To be frank, 10,000 kyats a day barely covers anything. Factories even hire kids while pretending not to know their real age. The work is tougher, but they get paid more—so workers choose factories," said a woman running a small beverage shop.
Many of the country's working-age population have left for other countries through various legal and illegal channels since the military coup. This mass departure has led to an ongoing labour shortage across multiple sectors.
Workers who remain in the country are being hit hard by inflation and the rising cost of living at the same time. Labour rights groups report that many are forced to reduce their spending significantly and are facing nutrition-related issues.
The minimum wage right now is not sufficient to cover an individual's daily expenses, prompting many industrial zone workers to work nearly double the standard hours to make ends meet.
