Unofficial employment is increasing in Vietnam. Photo courtesy of Thoi bao Kinh te Saigon Online
Unemployment among Vietnam’s young workforce and the number of unofficial jobs are both surging at alarming rate, according to the International Labor Organization (ILO).
The latest report from the ILO showed that the unemployment rate in people lower than 25 years old was 5.95 percent in the last quarter of 2013, more than three times the national rate, Thoi bao Kinh te Saigon Online reported.
The unemployment rate among those under 25 years old was more than 11 percent in urban areas in the same period.
Vietnam also saw a 2.2 percent increase in vulnerable jobs, including home businesses or self employment that do not offer pensions, in the fourth quarter compared to the same period in 2012, while the total number of employed people increased by 1.7 percent.
That made vulnerable jobs in Vietnam account for 62.1 percent of total employment, much higher than the world rate of 47.7 percent.
Gyorgy Sziraczki, director of ILO Vietnam, said the trend was worrisome and that the government should improve the social security system and change the employment scale toward more official jobs.
He also suggested proper investment in education to have young graduates meet employers’ demands and find better jobs.
The organization’s report showed that the most new jobs in 2013 were created among foreign-invested businesses, which created 4.8 percent more new jobs than the previous year.
It also included a ManpowerGroup survey that forecasts a lot of job opportunities at the sector as 80 percent of foreign-invested businesses have plans to expand production and improve technology over the next five years.
Simon Matthews, CEO of ManpowerGroup in Thailand, Vietnam and the Middle East said job vacancies for skilled workers including those for engineers and technicians will increase in the coming years.
He also forecasts that investments in production will divert in the next couple years from China to Vietnam, opening chances for a wide range of labor from basic workers to managers.
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