Unemployment in surprise rise, but no cause for alarm
An estimated one million workers were unemployed in the second quarter, up 16,400 against the previous quarter, the highest unemployment level in recent years, said Dao Quang Vinh from the Ministry of Labour.
Mr Vinh, who heads up The Institute of Labour Science and Social Affairs, noted incomes also deteriorated for the quarter with the average monthly wages falling by US$10 (VND230,000) to US$210 (VND4.85 million).
The drop in jobs and wages comes as the country’s economy has started to show signs of slipping, with the Ministry of Planning and Investment saying that GDP growth could come in at 6.27% for 2016 after a first half at around 5.5%.
That slip reflects in part, said Mr Vinh, a sluggish mining industry, which covers offshore fossil fuel exploration. The government is now eyeing a boost in exploration for crude oil and natural gas, volumes of which fell in the first half of the year due to falling crude oil prices.
Mining overall lost 2.2% in growth in the first half of 2016.
Vietnam with its 91.7 million people strong population has built economic growth, which reached a seven-year high of 6.7% in 2015, said Mr Vinh, mainly on opening of the gates to export manufacturing.
Factories have been invested by tech high-giants such as Hon Hai Precision, Intel and Samsung who have joined with more traditional plants pumping out fabrics, furniture and auto parts.
These factories are hardly going away, he said, as its pretty much understood by everyone that the economy in general and manufacturing in particular is on a sound and sustainable future.
As jobs move from agriculture to manufacturing, a slowdown is fully expected, but the slowdown (growth and jobs) in mining and farming dwarf in their contribution to the economy when compared to manufacturing.
Dao Quang Vinh said the rising unemployment figures are attributable to a skills mismatch between training and market demand – excessive numbers in some areas such as business management and economics, but a shortage in technological and technical engineers.
The figures showed 39% of those unemployed in the second quarter were well-educated, with over half of them possessing either junior college or full university degrees.
The number of unemployed young living in metropolitan areas was 11.3% of the total, while in rural areas it was 5.24%. Long-term unemployed – those registered as out of work for more than a year – stood at 22.6%.
We expect the labour market to deteriorate further with unemployment rising another 2% during the late months of the year, said Mr Vinh, which is fully to be expected and no cause for alarm as the economy shifts to a more industrial base.
Related News
Private sector remains driving force for economy
14:11 | 03/04/2023 Headlines
VBF 2023: Enterprises continuously propose many support measures
10:17 | 28/03/2023 Import-Export
Apply 609 preferential export tax lines, 11,526 special preferential import tax lines to implement the CPTPP Agreement
09:33 | 26/03/2023 Regulations
Breakthrough opportunities for the Red River Delta region
09:23 | 21/02/2023 Import-Export
Latest News
Australian Governor-General wraps up State visit to Vietnam
13:53 | 06/04/2023 Headlines
Vietnam active at UN Human Rights Council’s 52nd session
16:11 | 05/04/2023 Headlines
Vietnam commits to building prosperous, fair, healthy Mekong River basin: PM
16:09 | 05/04/2023 Headlines
Việt Nam, US hold 12th political, security, defence dialogue
14:15 | 03/04/2023 Headlines
More News
State visit to Vietnam by Australian Governor-General to deepen the two’s goodwill, trust: expert
14:10 | 03/04/2023 Headlines
Vietnam"s economy to grow by 6.6% this year: OECD
17:45 | 02/04/2023 Headlines
Bright outlook for Vietnamese tourism in new situation
16:52 | 02/04/2023 Headlines
Vietnam, US hold 12th Political, Security, Defence Dialogue
20:25 | 01/04/2023 Headlines
Vietnam calls for comprehensive, all-society approach to waste management
14:32 | 31/03/2023 Headlines
Many factors support foreign capital flow
13:40 | 30/03/2023 Headlines
Foreign SMEs pour capital into Vietnam
13:37 | 30/03/2023 Headlines
Leaders of aviation firms to be disciplined if employees committed wrongdoings
15:38 | 29/03/2023 Headlines
Vietnam - Lao joint border patrol held
15:31 | 29/03/2023 Headlines
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Australian Governor-General wraps up State visit to Vietnam
13:53 | 06/04/2023 Headlines
Vietnam active at UN Human Rights Council’s 52nd session
16:11 | 05/04/2023 Headlines
Vietnam commits to building prosperous, fair, healthy Mekong River basin: PM
16:09 | 05/04/2023 Headlines
Việt Nam, US hold 12th political, security, defence dialogue
14:15 | 03/04/2023 Headlines
Private sector remains driving force for economy
14:11 | 03/04/2023 Headlines