Providing solutions to develop a stable labor supply chain after the pandemic

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The comprehensive solutions need to be strengthened to restore labor supply chain. Photo:T.D

Deputy Minister of Labour, Invalids and Social Affairs Le Van Thanh spoke at the workshop “Developing a stable labor supply chain after the Covid-19 pandemic", within the framework of the Vietnam Economic Forum on June 5 in HCM City.

According to the Deputy Minister, the labor supply decreased sharply to the lowest level in many years. The rate of underemployed workers in the third quarter of 2021 surged 3.98%, or 1.7 million laborers at the highest level. The unemployment rate in the urban area soared to 5.54%. About 1.3 million laborers moved from urban areas to rural areas, from major economic centers to provinces.

The wages and incomes of workers also dropped, causing difficulties for them. The average monthly income of laborers plunged from VND6.7 million in 2019 to VND5.3 million in 2021. In the third quarter of 2021, the figure sharply decreased to VND5.2 million.

The labor supply suffered from other difficulties too. The supply has not met the demand of enterprises during the economic recovery period, especially for high-skilled workers.

Vice President of Vietnam General Confederation of Labor Ngo Duy Hieu said that after the two years of pandemic, the labor market's limitations have become more specific.

The number of workers in Vietnam surged but a sharp increase occurred in informal employment. Currently, the number of skilled workers is still high. Amid the lack of high-skill labors, many highly qualified workers have to work in manual jobs.

The Vice President said that the labor market needs to be developed in a modern, flexible and unified manner.

It is necessary to create an environment for recovery and development of the labor market, meeting the needs of economic development; improving the qualification of labor; amending and supplementing policies and regulations on labor supply and demand relations. Especially, improving the quality of the labor market information system and job center system.

Director of the International Labor Organization (ILO) Office in Vietnam Ingrid Christensen said that the pandemic has seriously affected economies, societies and the labor market. Globalization, climate and environmental change, and technological innovation, have created new forms of work and changed work structure and organization.

In Vietnam, the recovery and development of the labor supply chain is not the responsibility of one ministry, but involves many agencies at different levels and different partners in the reform process, according to the appropriate coordination mechanism and overarching policy framework.

For the structure of formal and informal labor is different, Dr. Bui Sy Loi, former Vice Chairman of the Social Affairs Committee of the National Assembly, proposed perfecting the relevant legal system in line with the Labor Code, to reduce the rate of informal workers, including vocational training for workers, developing financial institutions and microfinance for the informal economy.