Vietnam unemployment rate is reducing as the report from the government. Even though the number of people in working age is increasing, the rate of unemployment is decreasing. It is a good sign of improving social benefits.
Vietnam unemployment rate increases in colleges graduated
According to reports from the government, Vietnam unemployment rate is highest in the colleges graduated at 4.1%. It is followed by intermediate education and university bachelors at 2.61% and 2.57% perspectively. No matter bachelor is the most basic standard of education goal in Vietnam, the unemployment rate in this group is really high. It is even higher than the unemployment rate of primary professional education. This number indicates the ineffectiveness in the education system of the country. The reason is that bachelor is the main goal that they are aiming to but the result is not good.
The countryside is where the Vietnam unemployment rate reaches peak
Additionally, as the government reports, the longterm unemployment in Vietnam is increasing. The reason is that people today prefer stable jobs rather than changing. Therefore, the chance to apply for a job and replace those who have just quitted is not high. Moreover, technology is developing so fast. Most of the industries apply new tech to processing. Hence, the chance for those who are unemployed is not as high as before.
Besides, there are so many companies do not guarantee employees’ benefits such as insurance and other well-being as government regulations. Employees quit their jobs as a result. That is also an important reason to increase the Vietnam unemployment rate.
Furthermore, the market is changing so fast. As a result, the requirements of workers change too. Thus, workers need to be updated frequently. To those who have a time of unemployment, they need time to catch up with all changes. Therefore, the ability to successfully apply is difficult to be higher than those who are working and want to change their positions.
Hot industries in 2019
In the first quarter in 2019, there are some industries still keep their stable development in GDP. It has a certain impact on Vietnam unemployment rate. Manufacturing and processing industries reach 14% in GDP. Wholesale and retail GDP rate is 8.22%. And hospitality is 7.55%. Due to these good developments, the demand for human resource in these industries is increasing too.
As government predictions, manufacturing and hospitality are the hottest industries this year. Their demand for workers is also really high. It is a good chance for those who would like to work in these industries. Moreover, finance and banking are also hot industries which have a high demand for employees. Besides, human resource demand in Agriculture, Forestry and Fisheries industry, real estate will decrease this year. It also is a factor impact on this issue.
The main reason for unemployment is contract termination, not able to satisfy employers’ requirement, or difficult to come back after long-time unemployment. Moreover, the long-term unemployment rate is increasing. Technology also takes an important role in most of the industries.
In the first quarter of 2019, the number of workers increases. However, Vietnam unemployment rate decreases quite strongly. It is a good sign that the government has implemented the right decisions. Moreover, it is also a sign of positive economic growth.