Economic growth does little to ease unemployment
Economic growth does little to ease unemployment
Job opportunities in Laos are still thin on the ground despite strong economic growth.
“I've sent application forms to many companies and development projects but none of them have answered me so I look in the papers for job vacancies,” said a college graduate who has been job hunting for more than six months.
“I think most companies are looking for people with experience. I don't have any working experience so they may not accept me.”
It's not just new graduates who are in trouble; others are also complaining about how hard it is to find a job. This is a reflection of the fact that a significant percentage of Lao people have not benefited from the growing local and foreign investment and strong economic growth.
According to a report from the Ministry of Planning and Investment, foreign investment in the first six months of this fiscal year amounted to about US$2 billion, giving a major boost to economic development. Lao GDP is on track to reach 70,600 billion kip this fiscal year, an increase of about 8 percent compared to the previous year.
The increase in foreign investment was supposed to create more job opportunities for the Lao public but has failed to do so. The government's report shows that the Ministry of Labour and Social Welfare provided only 6,105 jobs in the first six months of this fiscal year, about 11 percent of the target for the year.
Labour officials earlier forecasted that strong economic growth would create at least 49,000 jobs this fiscal year.
Over the first six months of this fiscal year, the agriculture and forestry sector provided new jobs for 1,760 people, while the industry sector provided new jobs for 3,747 people. The services sector provided new jobs for 1,182 people. A total of 2,343 people took up jobs in other countries, mainly Thailand.
The labour ministry says in its report to the government that about 1,780 people, of whom 634 are women, have registered as unemployed and want the government to find jobs for them. Most want jobs in the industry, agriculture and services sectors.
The ministry says that from October to March, it gave permission for companies in Laos to import 4,069 workers. It has also registered 1,684 undocumented workers around the country. At present, there are about 200,000 undocumented foreign workers in Laos.
The government is amending laws to allow investors to seek permission from the government to hire more overseas workers if they cannot recruit people locally. This especially applies to areas of work in which Lao people do not have the requisite skills for the operation of foreign investment projects.
Officials say one of the major challenges for job seekers is their lack of skills compared to people from other countries. The government has acknowledged the problem and increased its education budget, hoping to train more people so they can find jobs and benefit from the burgeoning economy.
vientiane times
