Labour market rebounding quickly: labour minister

Friday, 2020-07-17 18:10:26
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Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung.
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NDO/VNA – Vietnam’s labour market has bounced back quickly after the social distancing period, according to Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung, who also expects it to return to the first-quarter level in the July-September period.

The minister said the coronavirus pandemic has led to disruptions in supply chains around the world, resulting in an increase in job losses.

The unemployment rate has never been so high as at present, at about 2.56%, compared to 1.98% at the end of 2019. The labour market has shrunk from 55.4 million people to about 52 million.

Meanwhile, the number of companies suspending operations has also grown, especially in the tourism, service, aviation, and hospitality sectors, he noted.

Most lay-offs were temporary and in small and medium-sized enterprises (SMEs) in certain sectors. If the effects of the pandemic are not resolved soon, however, permanent lay-offs will become common in the foreign-invested sector and at major businesses, the minister added.

The Government has been implementing a series of actions to concurrently combat the pandemic and boost economic recovery, from economic stimulus to aid packages. Vietnam’s labour market has bounced back quickly as a result, and is likely to reach some 55.4 million people in Q3, the same as in the first quarter, Dung added.

The ministry reported at the meeting that as of July 13, more than VND11.59 trillion (US$500.4 million) had been disbursed to support almost 11.54 million people and 9,425 business households affected by COVID-19.

The funds were part of a social security aid package of VND62 trillion, which targets those hit by the pandemic, under Government Resolution No. 42/NQ-CP.

The ministry also said that more than 574,000 new jobs were created nationwide in the first half of 2020, equal to 35.7% of the year’s target and 73.8% of the figure in the same period last year. Over 34,000 were for overseas workers, or 51% of the number in the first half of 2019.