Hanoi achieves 85% of annual job creation target by July

THE HANOI TIMES — Hanoi helped more than 144,000 people secure employment in the first seven months of 2025, achieving 85.6% of the annual target, according to the Hanoi Center for Employment Services.

The result was attributed to applying the city's labor market development solutions. 

During the period, the city provided jobs for over 37,200 workers from the city’s fund entrusted through the Vietnam Bank for Social Policies. As many as 2,400 were sent abroad under fixed-term contracts, and some 3,000 people were recruited through the job exchange system.

More than 18,100 people found jobs through job counseling and placement services, and more than 200 received vocational training courses.

In addition, the unemployment insurance fund paid out a total of VND427 billion ($18 million) to more than 16,300 workers.

Nearly 1,000 units and enterprises recruited 1,100 workers at 22 job fairs organized by the Hanoi Center for Employment Service.

As many as 36,000 people have received assistance worth a total of VND1.08 trillion ($42.4 million) from the city's unemployment insurance fund. 

To fulfill the target of creating jobs for 169,000 workers this year, the city will continue to stimulate the labor market, including reducing the time spent on administrative procedures, providing vocational training, and finding new jobs for the unemployed, Tran Dinh Canh, Director of the municipal Department of Home Affairs, told the Vietnam Government Portal.

Last year, Hanoi created jobs for more than 213,000 people, surpassing 29% of the annual plan thanks to flexible solutions. The city’s urban unemployment rate is expected to remain below 3%, in line with the targets set by the Hanoi People's Council.

Canh stated that the department has taken the lead in organizing job fairs and providing labor market information through the Hanoi Center for Employment Service, benefiting both job seekers and employers.

Of more than 213,000 people employed, over 53,000 secured jobs through government-funded initiatives facilitated by the Vietnam Bank for Social Policies, with a total value exceeding VND3.9 trillion (US$153.7 million).

Notably, the number of informal workers in 2024 rose 15% to two million, accounting for 50% of all workers.

Hanoimoi quoted Vu Quang Thanh, Deputy Director of the Hanoi Center for Employment Service, as saying that informal jobs are mainly low-skilled and replaceable, such as small services, informal trade, and general labor.

Though the informal sector provides significant employment for a large proportion of the population, it also poses significant challenges to the economy and society.

The informal workers often face employment risks and lack contracts, social insurance benefits, or other protections.

In terms of gender, there is a clear income gap between male and female workers in both the formal and informal sectors. Men consistently earn higher incomes than women across all years. This gap is due to differences in the types of work done by men and women, as well as gender inequalities in access to career opportunities and advancement.

In urban and rural areas, the income gap between formal and informal workers has widened significantly. In urban areas, the income gap is nearly VND4 million ($158), with the average income for formal workers at VND12 million ($473) compared to VND7.9 million ($311) for informal workers. In rural areas, the gap is about VND1.5 million ($57).

“This differential may be due to differences in working conditions, job opportunities, and economic development between the two regions," Thanh said, explaining that urban industries and services are more robust, offering higher income opportunities, while rural workers are often engaged in agriculture or seasonal jobs with less stable incomes.

Amid challenging labor market conditions, Hanoi has taken a number of initiatives to expand the labor market and create jobs for the redundant. In the first seven months, nearly 2,000 people were sent on temporary contracts to work in South Korea, Taiwan (China), and Japan.

At the same time, it has studied the current labor market situation and economic impact in the coming period to develop proper scenarios.

"To create more jobs, the Hanoi People's Committee and the Hanoi Center for Employment Service will continue connecting labor supply and demand in various ways, improve the quality of job fairs, and create a reliable bridge between job seekers and providers,” said Thanh from the center.