Vietnam’s unemployment rate of working age increases to highest level in past decade

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung

In a report just sent to Vietnam’s highest legislative body National Assembly, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung said that the unemployment rate in the working-age increased to the highest level in the past 10 years.

According to a report by the International Labor Organization (ILO), the Covid-19 pandemic wave turned from a public health crisis to a social and employment crisis, with a job deficit and grievances. Inequality has disrupted the livelihoods of hundreds of millions of workers, with most countries experiencing “severe” declines in employment and incomes, increasing existing inequalities and endangering opportunity to leave a long-term “scar” for employees and businesses.”

The shortfall in working hours in the second quarter of 2021 is 4.4%. In addition, the pandemic caused “the income of workers to decrease sharply and the poverty rate to increase.” “With that, as a result, progress made over the past five years towards eliminating situation of workers employed but still poor has returned to where it came from as the still-poor employment rate returned to 2015 levels,” stated the report.

Vietnam has experienced 4 outbreaks of the Covid-19 epidemic, especially the 4th wave (from April 27, 2021, the most complicated outbreak ever), which has been causing serious impacts to the socio-economic activities of the country and the production and business activities of enterprises, jobs and the lives of workers.

In particular, the 4th wave of epidemics has penetrated and directly impacted large cities, industrial parks, export processing zones, enterprises, which employ a lot of labor, contribute much to economic development, budget revenue, and are closely linked with global value chains.

In 23 provinces and cities that had to apply social distancing and increase distance according to Directive No. 16/CT-TTg, the unemployment rate of working-age workers in the third quarter of 2021 stood at 3.98% – the highest growth rate in the past 10 years, making it even more difficult for workers to find jobs.

On the implementation of Resolution No. 68/NQ-CP dated July 1, 2021, on a number of policies to support employees and employers facing difficulties due to the Covid-19 pandemic (hereinafter referred to as Resolution No. Decision 68), Minister of Labour, Invalids, and Social Affairs Dao Ngoc Dung acknowledged that some localities faced financial difficulties, were afraid of making mistakes, and were afraid of taking responsibility, so they were slow or did not support the subjects; In particular, there are still places where there is still a situation state official taking advantage of the Covid-19 epidemic to make a profit.

The total budget for implementing the monetary support policy is VND20.28 trillion, supporting 15.01 million people (89.4% of the people and 90.5% of the total supported funds in 23 provinces and cities to the north. Nam), Minister Dao Ngoc Dung informed the National Assembly.

Notably, there are nearly 13 million freelance workers and specific people in 56/63 provinces and cities that have been supported with a total budget of VND16.69 trillion from state budget sources, mobilization of the State budget, and the Vietnam Fatherland Front.

In addition, the Bank for Social Policies approved the application for 1,456 times of employers to borrow VND756 billion to pay salaries for 211,280 employees. Disbursed VND745.9 billion to support 1,433 turns of employers to pay wages to 208,352 employees.

Some localities with a high total disbursement budget are Bac Giang (VND327.6 billion), Bac Ninh (VND83.6 billion), Ho Chi Minh City (VND55.8 billion), Hanoi (VND47.4 billion), Can Tho (VND46.8 billion), Hung Yen (VND11.7 billion), Dong Nai (VND10.9 billion), and Binh Dinh (VND9.1 billion).

The support is generally deployed quickly, promptly, openly, transparently, and to the right people,” generalized the head of the Labour, Invalids, and Social Affairs sector.

In particular, Ho Chi Minh City actively implemented 3 practical support packages for people in several phases with a total cost of about VND11.89 trillion, deployed millions of “social security bags“, in order to realize the goal of ensuring people have a minimum standard of living, do not suffer from hunger, thereby helping people feel secure in implementing the principle of “whoever is, where he is.

Binh Duong province has supported the rent of accommodation, food, and food for employees, expanding the number of employees working under the contract regime but not participating in social insurance to enjoy support policies…

However, Mr. Dao Ngoc Dung admitted that a part of people, employees, and employers who are beneficiaries have not yet received or are slow to receive benefits. The support level is low. The implementation of document establishment and support work in some localities is still slow. Some localities face financial difficulties, fear of making mistakes, fear of taking responsibility, so they are slow or not yet supported; In particular, there are places where there is still a situation state official taking advantage of the Covid-19 epidemic for personal gain, being considered and handled in accordance with the law. Support work in many localities is still mainly carried out manually, not paying due attention to the use of databases and applying information technology to support payments, so the situation of “mistaking“, “receivingmistake” occurred in some localities.

On the basis of recent implementation results, the Ministry of Labour, Invalids and Social Affairs has submitted to the Government for promulgation legal documents to remove difficulties and obstacles arising in practice, expand beneficiaries, continue procedures for simplifying dossiers, confirmation and approval procedures so that employers and employees can receive timely support, especially the loan policy for salary payment from the Bank for Social Policies. At the same time, it has strengthened the inspection and supervision of the implementation, in the immediate future, it has established 12 inspection teams led by leaders of the Ministry of Labour, Invalids, and Social Affairs to inspect 33 provinces and cities, and strictly handle violation cases.

The Minister suggested that localities urgently make a list, approve and provide support, especially cash support for groups that have not yet received benefits, be flexible in reducing the processing time for supporting dossiers of the Government workers. Request the Ministry of Finance to timely provide funding and guide localities to arrange funding to make early payment for those who have been approved for the support list. (Translated)


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