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Jul 11, 2020 / 14:39

Nearly 31 million workers in Vietnam affected by Covid-19: Report

Up to 17.6 million people have received less income than before the Covid-19 outbreak while the services sector faced the most severe impacts with 72% of its workforce directly affected.

In the first six months of 2020, 30.8 million workers aged 15 and over in Vietnam have been hit by the Covid-19 pandemic, eitheir becoming unemployed, being forced to take unpaid leave or having their working hours reduced, according to the General Statistics Office (GSO).

 Nearly 31 million workers in Vietnam affected by Covid-19.

Upon breaking down, 28.7 million people were working, 900,000 were out of work and 1.2 million were being dependent.

Notably, 17.6 million people, or 57.3% of the affected ones, have received less income than before the Covid-19 outbreak.

The services sector faced the most severe impacts with 72% of its workforce directly affected, followed by the industry and construction sector with 67.8%; and agro-forestry and fishery with 25.1%.

The number of workforce aged 15 and over in the second quarter reached 53.1 million, down 2.2 million compared to the previous quarter and 2.4 million year-on-year, marking the sharpest plunge in the past decade.

In the April – June period, the manufacturing and processing sector was hit the hardest with over 324,000 workers harmed by the pandemic; followed by hospitality and catering services with 160,000; education and training with 122,700; wholesale, retail, automobile reparation with 120,000.

The number of people in the working age looking for jobs in the second quarter was estimated at nearly 1.5 million, up 364,000 compared to the previous quarter and 726,600 year-on-year.

The monthly income of workers in the second quarter averaged VND5.2 million (US$225), down VND525,000 (US$23) or 10% against the previous quarter. This is also the first decline in monthly income over the last five years.

To mitigate severe impacts of Covid-19 on the labor market, the GSO urged government agencies to speed up the implementation of the financial support package worth VND62 trillion (US$2.7 billion) for people directly affected by the pandemic.

Moreover, there should be specialized support packages for vulnerable people, particularly women and low-skilled workers.

The government is expected to continue providing efficient solutions for enterprises to resume their operations.

At a time when the Covid-19 pandemic remains complicated globally, the government should encourage workers to enhance their skills and knowledge to meet market’s demands in a new normalcy, the GSO suggested.

Additionally, employers should also adopt to new business and production methods in the post-Covid-19 pandemic and devise their strategies accordingly, stated the GSO.

Vietnam’s GDP expanded 1.81% year-on-year in the first half of 2020, the lowest six-month growth rate in the past 10 years, dragged down by the growing impacts of the Covid-19 pandemic and global uncertainties.