Over 30 million Vietnamese workers bear brunt of coronavirus pandemic

Jul 15th at 14:51
15-07-2020 14:51:31+07:00

Over 30 million Vietnamese workers bear brunt of coronavirus pandemic

By the end of June this year, some 30.8 million Vietnamese people aged 15 and above had suffered the scourge of the novel coronavirus, according to a quarterly labor survey.

Workers file for unemployment insurance at the Hanoi Center for Employment Services. More than 30 million Vietnamese workers were adversely affected by the novel coronavirus pandemic by the end of the second quarter – PHOTO: VNA

The survey was released last week by the General Statistics Office of Vietnam with the International Labor Organization's (ILO) technical support.

In a statement, Chang-Hee Lee, director of the ILO in Vietnam, called for concerted efforts among the Government, workers’ and employers’ organizations to save jobs and protect vulnerable workers as the pandemic is taking a toll on the country’s labor force.

The survey found that the labor force had reached a record low level. It shrank by 2.2 million people compared to the previous quarter and by 2.4 million people compared to the same period last year.

This was higher in rural areas and among the female workforce, according to the survey.

“The labor market in the second quarter of 2020 suffered from a mix of elements,” said Valentina Barcucci, ILO Vietnam’s Labor Economist.

The preventive social distancing period at the beginning of the quarter quickly brought the virus under control, with a limited impact on the domestic market compared to what other countries have experienced.

“However, impacts are unavoidable due to the scale of the necessary measures adopted. On the other hand, lockdowns in other countries and border closures in the last quarter have dealt a strong blow to Vietnam’s economy and jobs,” she added.

The pandemic has reduced economic activity in some sectors, such as services, industry and construction, to unprecedented levels.

“As a result, we see workers who have lost their jobs but are not looking for new jobs, probably because there are not many opportunities around,” Barcucci pointed out.

This is the first time in the last five years that the income of workers in the second quarter recorded a year-on-year decrease. The average monthly income of workers during this period was VND5.2 million, down by 5.1% against the previous year.

“And the most vulnerable sections in the labor market are bearing the brunt of the economic impact of the pandemic,” said Barcucci.

Informal workers suffered a greater loss than formal workers, as their monthly income dropped by 8.4% and 4.7% year-on-year, respectively. The higher the qualification of workers, the lower was their reduction in income.

The second quarter of 2020 also saw the highest unemployment rate over the last decade at 2.73%, with the biggest increase noticed among low-skilled workers.

However, director of ILO Vietnam Chang-Hee Lee noted that Vietnam is better positioned than most other countries to overcome the economic and labor market challenges, just as it did with the public health crisis.

Stimulating the economy and jobs; supporting enterprises, employment and incomes; protecting workers at the workplace and using social dialogue between the Government, workers and employers to find solutions are what Vietnam would need to persistently continue, he said.

“It’s time for the Government, employers and workers to unite to develop and roll out evidence-based policies and measures to help the country come out of this crisis in an even better shape than it was when it started,” he added.

At the global level, the ILO’s latest monitor estimated that there was a 14% drop in working hours around the world during the second quarter of 2020, equivalent to the loss of 400 million full-time jobs based on a 48-hour working week.

The Saigon Times



RELATED STOCK CODE (1)

NEWS SAME CATEGORY

Growth to spur via raised public debt

The government is planning to raise the country’s public debt in an aim to spur on the economy’s aggregate demand, creating opportunities for international...

Focusing on technology transfer in attracting new wave of FDI capital

As Vietnam is attracting high-quality foreign inflows, domestic firms now have an even greater opportunity to draw technology transfer to improve added value in its...

Vietnam trade surplus hits nearly US$5.5 billion in Jan-Jun

Vietnam’s external trade decreased 1.4% year-on-year to nearly US$240.12 billion in the six-month period.

Vietnam's foreign borrowings jump 1.6-fold to US$533 million in H1

The government is looking at loans and government bonds, among others, to meet growing demand of state expenditure.

Vietnam trade surplus on track to beat 2019's all-time high

Vietnam’s exports to key markets such as the US and EU sharply rebounded across many sectors.

Japanese companies enticed by local investment climate

Driven by new encouraging policies and motivations, more fresh opportunities will be coming for Japanese investors in Vietnam, expecting a new investment wave ahead.

Nation’s economy not in safe haven just yet

The unpredictable aftermath of the global health crisis affecting the entire economy has prompted the government to pursue lower-than-planned economic growth for...

Foreign investors expected to own 35 per cent of stake in petrol and oil firms

The Ministry of Industry and Trade (MoIT) has proposed the Government to allow petrol and oil businesses to transfer stakes to foreign investors, but not exceeding...

Foreign investors confident in Vietnam’s business environment: official

With the successful control of COVID-19, Vietnam has been widely recognised by the international community as a safe and attractive investment destination.

Hoa Lac Hi-Tech Park hopes for new wave of investment

Politburo member Vuong Dinh Hue, Secretary of the Hanoi Party Committee, made a working trip to the Hoa Lac Hi-Tech Park on July 10 with the aim of removing...


MOST READ


Back To Top