Deputy Minister of Labor, Invalids and Social Affairs Le Van Thanh said the pandemic has left negative effects on the labor market and laborers’ jobs and incomes.

Labour supply decreased sharply while the number of laborers with jobs dropped to the lowest level for many years. The number of laborers with jobs stood at 49.07 million in the fourth quarter of 2021, down 1.79 million from one year ago. 

At the 4th Vietnam Economic Forum held in Ho Chi Minh City on June 5

The unemployment rate peaked in Q3 of 2021 to 3.98 percent, equivalent to over 1.7 million people. The rate in urban areas reached a record 5.54 percent in the same quarter.

Average monthly incomes of laborers dropped from 6.7 million VND in 2019 to 5.3 million VND in 2021.

In particular, there has been a reverse trend in the labor structure, with 1.3 million laborers moving from urban areas to rural areas and from big economic hubs to localities.

The Deputy Minister said although most sectors and fields have entered the recovery period and begun to record growth again, labor supply remains limited, unable to meet demand, especially the demand for skilled personnel. 

Some localities and industries are facing labor shortage, particularly textile-garment, electronic assembling, wood processing, and tourism and education. 

Vice Chairman of the Vietnam General Confederation of Labor Ngo Duy Hieu underlined the need to create a favorable environment for the labor market to recover and develop, calling for early reform of policies on wage, social security, social housing.

He also suggested reforming policies on investment attraction to prevent the concentration of too many investment projects in a locality, which puts pressure on the local infrastructure while causing local labor shortage.

Vice Chairman of HCM City People’s Committee Duong Anh Duc shared the city’s experience in keeping laborers. He said taking care of laborers’ life, both material and spiritual, during the pandemic has helped workers stay with their employers, allowing enterprises to quickly resume operation and avoid disruption in labor supply.

Source: VNA