A shock to households and the economy

Cambodia is emerging from one of the most difficult periods in its recent history. The border conflict of 2025 displaced more than 640,000 people[1] and disrupted essential services across several provinces. At the same time, an estimated 900,000 migrants returned from Thailand, many without their savings, or immediate job prospects.

This was not only a humanitarian emergency. It was also a major economic and social setback for thousands of households across the country. A United Nations Socio-Economic Impact Assessment shows just how deep the impact has been. Based on macro‑economic modelling, large‑scale household surveys, and analysis from multiple sources, the assessment found that even months after the initial shock, many families were struggling to recover. Survey data collected in late 2025 from 674 internally displaced households and 1,055 migrant returnees found that incomes fell by 34 % among internally displaced people (IDPs) and nearly 50% among returnees, while the loss of remittances made it even harder for families to cope. The non-employment rose to 38% among IDPs and 37.9 % among returnees[2].

Behind these numbers are real hardships. Families that once depended on wages and remittances suddenly found themselves unable to cover basic needs. The emotional toll has been severe too, with 85.8 % of displaced households surveyed reporting serious impacts on their mental and emotional well-being. Rural livelihoods were also badly affected. Crop losses were steep, and livestock losses added to the pressure on already fragile household economies. 

A timely response that stabilized the shock

Cambodia did not stand still.

The Royal Government moved quickly to stabilize the situation. In August 2025, the Ministry of Labour and Vocational Training had identified approximately 250,000 job vacancies across factories and enterprises nationwide, accompanied by job‑matching initiatives, including the 1297 employment hotline and nationwide employment forums[3]. At the same time, United Nations (UN) agencies and partners via the Humanitarian Response Forum helped deliver food, nutrition, water, health care, sanitation supplies, temporary learning spaces, protection services, and shelter support to affected communities[4]. 

These early measures offered immediate relief to displaced families and helped avert a deeper employment crisis.

The next phase of recovery requires strategic choices

Cambodia is now entering a more difficult phase: how to move from emergency response to lasting recovery. That will require more than short-term relief or temporary jobs. It will require strategic investment in people, livelihoods, and local economies. 

The United Nations Socio-Economic Impact Assessment outlines several scenarios. 

Under a fragmented recovery, continued uncertainty could drag growth down to 4.4 % in 2025 and 3.7 % in 2026. With more structured support for reintegration and livelihoods, growth could improve modestly. But the strongest path is a transformative recovery, built on sustained peace and targeted investments in skills, agriculture, small businesses, and social protection. Under that scenario, growth could strengthen to 6.4 % by 2029. 

That is why this moment matters so much.  

Many returnees bring valuable skills gained abroad, especially in construction, manufacturing, and services, but now they find themselves in low-paid or insecure jobs. Recognizing their skills, connecting them to better jobs, and expanding access to training will be essential. Agencies such as ILO[5] and IOM[6] are already supporting this effort through Migrant Worker Resource Centres and Recognition of Prior Learning systems. 

Agriculture must also be part of the answer. Many affected households remain tied to farming. Targeted support, such as access to inputs, irrigation, small grants, and market linkages, can help restore incomes and strengthen rural economies. Women and young people, in particular, stand to benefit if these investments are made in the right way. 

Just as important is bringing support closer to communities. Training, outreach, and employment services at commune level can reduce the barriers of cost, distance, and time. Recovery works best when people can reach the help that is meant for them.