Over 5 million jobs in Vietnam hurt by coronavirus outbreak

Thursday, 2020-06-04 11:05:32
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In May, nearly 158,000 people filed for unemployment benefits in Vietnam.
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NDO - More than five million Vietnamese workers lost their jobs or worked fewer hours due to the coronavirus outbreak in the first four months of 2020, according to official data.

Four in five workers in the informal sector had to stop working for about a month to comply with the social distancing measures imposed to curb the virus, while two in three enterprises were forced to furlough their employees.

A survey by the Ministry of Labour, Invalids and Social Affairs (MOLISA) on the first-quarter job market shows that Vietnam’s labour participation rate stood at 75.4%, the lowest level in ten years.

In May, nearly 158,000 people filed for unemployment benefits in Vietnam, up 155.2% over the previous month and 144% year-on-year.

Following the easing of social distancing rules, workers have started returning to work, at a rate of about 70,000-80,000 each month, but many enterprises have remained in a difficult situation due to stalled exports.

MOLISA said it is planning to spend between VND3-5 trillion (US$129-215 million) from the unemployment fund on retraining and skill enhancement to help workers adapt to coronavirus-induced changes to the labour market.

Under the most optimistic scenario, Vietnam will lose about 70,000-80,000 jobs each month in June and the third quarter if the global coronavirus situation improves.

The number of jobs lost each month will be 80,000-90,000 if the epidemiological situation in the world remains the same or becomes worse.

In the worst-case scenario when Vietnam is severely affected by the further deteriorating global situation, monthly job losses will total at 90,000-100,000.

The number of workers having their jobs suspended in the three above-mentioned scenarios will be 3-3.5 million, 5-5.6 million and 6.1-7.2 million respectively.