Vietnam labor market shows early signs of recovery

06:00 | 01/11/2020 Society

(VEN) - After a record drop in the second quarter of 2020, the workforce in the third quarter has increased although it has yet to recover to last year’s level.

vietnam labor market shows early signs of recovery
The domestic labor market has gradually recovered since the third quarter

According to Nguyen Thi Huong, Director General of the General Statistics Office of Vietnam (GSO), the outbreak of the Covid-19 pandemic in late July had an impact on the country’s labor and employment situation, affecting the momentum of job recovery and income improvement after the social distancing imposed in April 2020. In the third quarter, the labor, employment and income were improved compared to the second quarter, but were still lower than in the same period in 2019. Specifically, the labor force aged 15 and over numbered 54.6 million, up 1.4 million compared to the previous quarter, but still 1.1 million lower than the same period last year.

As of September 2020, 31.8 million Vietnamese aged 15 and over have been negatively affected by the Covid-19 pandemic. Of these, 68.9 percent have had their income cut, whether due to reduced working hours or days or furloughs. The service sector was most affected by the pandemic with 68.9 percent of workers affected, followed by the industry and construction sector with 66.4 percent of workers affected, and 27 percentage of workers affected in the agro-forestry-fishery sector.

Nonetheless, according to Valentina Barcucci, Deputy Director of the International Labor Organization (ILO) Country Office for Vietnam, the unemployment rate in Vietnam both before and since the Covid-19 pandemic was and still is much lower than other countries in the region.

The Covid-19 pandemic had a strong impact on enterprises’ operations, causing 33.4 percent to reduce labor in the first nine months of 2020 compared to the same period last year, and this rate is expected to reach 36.4 percent by the end of 2020.

According to the results of a labor force survey in the third quarter of 2020, employees continued to be negatively affected by Covid-19, however, with signs pointing to economic recovery and development, policies need to create motivation and remove difficulties for businesses and employees, Huong added.

According to the General Statistics Office of Vietnam, from now to the end of the year, if the pandemic is well controlled, and the production and business situation is favorable, employees will harvest many job opportunities, and the minimum unemployment rate will be maintained at the third quarter level or lower. In addition, the National Assembly-set target of curbing the unemployment rate at below four percent is believed to be completely achievable.

Thu Phuong