COVID-19 pandemic increases unemployment rate

The COVID-19 pandemic has had great impact on the labour market, with an increase in the unemployment rate, according to the Department of Employment of the Ministry of Labour, Invalids and Social Affairs (MoLISA). ​
COVID-19 pandemic increases unemployment rate ảnh 1Workers at the Vietnam-Singapore Industrial Zone in the southern province of Binh Duong receive COVID-19 vaccination (Photo: VNA)
Hanoi (VNS/VNA) - The COVID-19 pandemic has had great impact on thelabour market, with an increase in the unemployment rate, according to theDepartment of Employment of the Ministry of Labour, Invalids and SocialAffairs (MoLISA).

The department said thatin the first seven months this year, the number of enterprises withdrawing fromthe labour market was higher than the number of newly established enterprises.Specifically, more than 79,700 enterprises withdrew from the market whereas75,800 enterprises were newly registered.

On average, more than11,300 businesses withdrew from the market every month in the period.

The numbers of enterpriseswithdrawing from the labour market were higher in wholesale, retail,automobile and motorbike repair, manufacturing and processing,construction, accommodation, real estate business and education.

Unemployment increasedbecause many businesses were no longer able to cope with the pandemic. Thenumber of unemployed workers in the second quarter was 1.2 million,accounting for 2.62 percent of people of working age.

In July, the unemploymentrate of people at working age in urban areas grew to more than 4 percent.

The number of people whostopped working is different between regions. Specifically, in 19 southernprovinces and cities that are applying social distancingfollowing Directive No 16/CT-TTg, nearly 20 percent of businesses havestopped operation and nearly 3 million people lost their jobs, accounting for33.4 percent of the region’s total workforce.

In the central region, therate of businesses temporarily suspending operation was at 3.4 percent, withmore than 500,000 unemployed workers, making up 15 percent of the local workforce.

In the northern region, byAugust 5, a total 288 enterprises had to suspend operations in Bac Giang provincewith 15,262 workers made unemployed, and in Hanoi, 7,435 enterprisestemporarily suspended operations with over 180,000 employees having tostop working.

Labourers in theagriculture, forestry and fishery sectors suffered the least negativeimpact of the pandemic with 8.9 percent of workers in this areaaffected,  followed by those in industry and construction with 24.6 percent,and service sector workers hardest hit at 30.6 percent.

MoLISA has proposed agroup of solutions to support businesses and workers in difficulties duringthe pandemic.

Localities haveimplemented measures to help with production and business recovery, economicdevelopment, and social stability, such as issuing programmes and policies toencourage young workers to improve their skills, and facilitate businesses, businesshouseholds and workers’ access to loans to restore production and create jobs./.
VNA

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