Tuesday, 18 Jun 2019

Vietnam’s labor market in Q2/2018 signals improvements

Updated at Wednesday, 19 Sep 2018, 11:30
The Hanoitimes - Vietnam`s number of employed people increased, labor restructuring was positive, and the proportion of wage workers increased in the second quarter of 2018 (Q2/2018).
Vietnam’s labor market in second quarter of 2018 recorded a number of brighter spots, according to Deputy Minister of Labor, Invalids and Social Affairs Doan Mau Diep at a press conference on September 18 updating on the country's labor market in Q2/2018.
The overview of the workshop. Photo: Trung Kien
The overview of the workshop. Photo: Trung Kien
Deputy Minister Doan Mau Diep said that Vietnam's economic growth in Q2/2018 was lower than that in Q1/2018 but still higher than the same period last year. This improvement led to improvements in the country's labor market, such as a rise in employed people, positive labor restructuring, and a higher proportion of wage workers.

Besides, the unemployment rate in Q2/2018 slid compared to Q2/2017. However, workers’ income was slightly lower than that in Q1/2018 when Ted and year-end bonuses were paid, the youth unemployment rate slightly increased, Diep added.

The good news is that the number and proportion of unemployed workers have fallen slightly compared to Q1/2018 and the same period last year. Specifically, Vietnam has 1,061,500 unemployed people, down 5,600 people compared to Q1/2017, Diep said.

The number of unemployed people with "university and above" level drops to 126,900, down 15,400 compared to Q1/2018, accounting for 2.47%. There were 70,800 unemployed people with "college" level, down 18,000 people compared to Q1/2018, representing 3.82%, he added.

Employees’ average monthly income of waged employees was VND5.62 million (US$241.66) in Q2/2018, down VND166,000 (US$7.14) compared to Q1/2018, Diep stressed.

According to Dao Quang Vinh, director of the Labor Science and Society Institute, the reason why employees’ income in Q2/2018 decreased slightly compared with Q1/2018 is that enterprises paid more Tet holiday bonuses in Q1/2018.

Vinh also said that workers’ income in most industries
in Q2/2018 was lower than that in Q1/2018, in which the largest reduction was in the mining and processing sector.

Talking about the prospect of the local labor market, Vinh said that the Vietnamese government’s efforts to remove the difficulties for its economy will have a better impact on the market in Q3/2018. The GDP growth is forecast over 7% in the whole year.

It is forecast that the total number of employed people in Q3/2018 will be about 54.26 million, increasing 237 thousand people (0.44%) compared to Q2/2018 and increasing 0.91% over the same period of 2017, Vinh added.

"Free trade agreements are expected to bring about breakthroughs in the local economy, result in export market expansion, and the trend in science and technology application in enterprises. Those will be factors affecting the structure of Vietnam’s labor market," Vinh told Hanoitimes.
Trung Kien
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