Workers apply for unemployment insurance. (Illustrative image – Source: VietnamPlus) Hanoi (VNA) - To help workers overcome difficulties caused by job loss, various comprehensive solutions are required, ranging from creating and maintaining jobs to launching additional direct support packages for them.
According to data from the Ministry of Labour, Invalids, and Social Affairs (MOLISA), in the early months of 2023, there were 509,903 people, or about 3.4% of the total workforce, affected by job loss. Notably, more than 54% of them were laid off. The situation shows no signs of improvement. In June, businesses planned to let even more workers go.
The layoffs were primarily reported in localities with large industrial parks and economic zones, such as Binh Duong (71,590 people), Dong Nai (32,450), Ho Chi Minh City (44,890), Bac Giang (27,500), Bac Ninh (13,990), Hai Duong (16,020), and Hanoi (46,860). Those affected were mainly from industries such as textile and garment, leather and footwear, electronic component and product manufacturing.
MOLISA found job cuts were primarily due to economic reasons and difficulty in seeking and developing foreign markets. Enterprises facing challenges are those operating in the industrial processing and manufacturing sectors such as textile and garment, leather and footwear, electronic components and products manufacturing, and wood processing.
Regarding the labour market forecast for the second half of 2023, Pham Ngoc Toan, director of the center for analysis and strategic forecast under the ministry’s Institute of Labour Science and Social Affairs, believed that there will be bright spots in the service sector as China reopens, allowing it to grow. The labour market in the service and construction sectors should have good prospects as the Government implements its public investment packages. However, there will also be challenges, as Vietnam's exports to certain countries are restricted.
The manufacturing sector is predicted to continue cutting jobs. (Illustrative image – Source: VietnamPlus) Minister of Labour, Invalids, and Social Affairs Dao Ngoc Dung acknowledged that over 80% of employees in the textile, garment, leather and footwear industries are women. Therefore, the recent job losses and furloughs mostly affected female workers.
The lion’s share of the three million workers who lost their jobs recently are mothers, said Minister Dung.
According to the official, the long period under the impact of the COVID-19 pandemic eroded worker savings. Consequently, they will face even more hardships. This issue needs immediate attention.
Currently, the Government has three solutions to care for the group. These are providing stable production conditions for firms; creating stable jobs; and implementing existing policies effectively. These policies include those targeting workers who lose their jobs; free job consultations and referrals; preferential credit policies to create, maintain, and expand employment from the national employment fund; and support policies for worker retraining.
A candidate in a job interviews. (Photo: VietnamPlus) In cases where workers cannot find jobs and have to return to their hometowns, it is recommended that local authorities establish mechanisms and policies to support credit and create employment opportunities, both in the formal and informal sectors, so that female workers can adapt to the new situation, said Dung.
According to the Ministry of Finance, this year, the balance of the unemployment insurance fund exceeded 59.35 trillion VND (2.5 billion USD). Currently, the ministry is designing a support package for workers using this surplus, which will allocate around 23 trillion VND from the unemployment insurance fund to assist workers during this time of hardship./.
