1.4 million young adults are without employment, reveals ministry
The labour market is gradually returning to normal development trends seen before the COVID-19 pandemic, according to the Ministry of Labour, Invalids and Social Affairs (MOLISA).
However, the department noted that there are still issues to address, in particular the high youth unemployment rate.
MOLISA recently released data regarding the labour market situation and employment during the first quarter of 2024. Of particular interest is the increase in the unemployment rate compared to the previous quarter and the same period last year, despite the usual decrease in unemployment following the Lunar New Year.
The youth unemployment rate remains notably high. Nationwide, there are approximately 1.4 million unemployed (aged 15 to 24) who are neither employed nor engaged in education or training, which is 11 per cent of the total youth population. This rate is higher in rural areas compared to urban areas, standing at 12.8 per cent versus 8.3 per cent, respectively.
During the first quarter, the nationwide labour force aged 15 and above is put at 52.4 million, marking a decrease of 137.4 thousand people compared to the previous quarter and an increase of 175.8 thousand people compared to the same period last year.
The labour force participation rate is reported at 68.5 per cent, reflecting a decrease of 0.4 percentage points compared to the previous quarter and the same period last year. Additionally, the employed labour force is estimated at 51.3 million people, indicating a decrease of 127 thousand people compared to the previous quarter and an increase of 174.1 thousand people compared to the same period last year.
The average income of workers in the first quarter of 2024 is VNĐ7.6 million (US$300) per month, an increase of VNĐ301,000 ($11.8) compared to the fourth quarter of 2023 and an increase of VNĐ549,000 compared to the same period in 2023.
However, in the early months of 2024, there is still an imbalance in local labour supply and demand and uneven development among regions, sectors and economic industries; the corrections and self-balancing mechanisms of the market remain weak.
The quality of the labour supply still has many limitations and constraints, failing to meet the demand of a modern, flexible, sustainable and integrated labour market. To date around 37.8 million workers have not received training beyond the elementary level.
To stabilise the labour market, representatives of MOLISA asked that the Ministry continue to direct the implementation of comprehensive solutions to develop the labour market and maintain a stable labour force.
The labour ministry has also directed local areas to closely monitor and study the employment picture, especially of enterprises in industrial zones, in order to promptly support them in overcoming labour shortages.
In the future, the Ministry will continue to increase the connection between labour supply and demand in the market, especially connecting the labour market of provinces and cities in key economic regions. Emphasis will be placed on solving unemployment levels for the younger workers, those of middle age, from vulnerable groups and female workers.