Vietnam's labor market recovers in a sustainable manner

Vietnam’s labor market continued to maintain its recovery momentum in the third quarter of 2022, with the highlight being the large number of employed workers who switched from the informal to the formal sector.

A surge in employed working people shows a positive signal of economic growth and recovery in the post-pandemic period. Photo: ILO Vietnam

According to the latest report from the General Statistics Office (GSO), the number of employed people in the working-age group in the third quarter reached 17.8 million, increasing by 642,800 compared to the previous quarter, and 2.7 million on year. 

Both the total labor force and employed workers in this quarter increased relative to the previous quarter and over the same period last year in all three economic sectors, the report noted.

Director General of the GSO’s Department of Population and Labor Statistics, Pham Hoai Nam, said: “The number of employed workers in the formal sector increased much higher than those in the informal sector, showing the labor market has recovered sustainably.”

He added that the flexible approach to pandemic prevention, the policy of full reactivation of tourism activities and the Socioeconomic Recovery and Development Program under Resolution No. 11, with specific solutions (support for workers to re-enter the labor market and for those currently employed in enterprises throughout the country), have helped to promote a substantial recovery of the labor market in recent times.

In the first nine months of 2022, the number of employed workers aged 15 and older was 50.5 million, representing an annual rise of 1.5 million. 

Nguyen Huy Minh, Deputy Director General of the department, added such a surge in the number of employed working people showed a positive signal of economic growth and recovery in the post-pandemic period.

More than one million people of working age became jobless in the first nine months, or 300,000 fewer than last year.

In the “World Employment and Social Outlook: Trends 2022” report, the International Labor Organization (ILO) forecasted over 1.3 million Vietnamese laborers would be out of work in 2022 or 100,000 people more than the previous year.

The report said that the 2023 projection in Vietnam is about 1.2 million people, equal to 2021, the year of the Covid-19 pandemic. Last year, Vietnam’s labor market faced more obstacles and difficulties than in 2020 due to the prolonged Covid-19 outbreak.

Solutions to energize Hanoi's labor market

According to the latest report from the Hanoi Labor, Invalid and Social Affairs Department, the city found jobs for more than 168,000 people in the first nine months of 2022. 

Of the total, 3,638 workers were sent to work abroad under fixed-term contracts, and nearly 12,900 people found work through the job exchange system.

In the last months of 2022, the capital city will continue implementing solutions to energize the labor market by simplifying administrative procedures, opening vocational training courses and seeking jobs for unemployed people. 

The city will deploy policies to provide loans for job creation, labor export, production development, restoration and development of traditional handcraft industries.

The city will also continue to implement policies to support employees, improve labor market forecasting, evaluate applications and approve loans, collect market information, and connect labor supply and demand in parallel with ensuring the prevention of the Covid-19 pandemic.

The department has proposed the municipal authorities raise funds entrusted through the Social Policy Bank branch to provide loans to business households and employees facing difficulties due to the Covid-19 pandemic to restore production and business activities.

They will also effectively implement the project to improve the operational efficiency of the city’s job exchanges in the 2021-2025 period and the following years.