Labour market expects positive growth as year ends, but hurdles lie ahead: experts

More job openings are expected towards the end of the year when retail businesses enter their peak period. — VNA/VNS Photo Trần Việt

HÀ NỘI — Positive growth is projected for Việt Nam’s labour market in the last quarter of 2024, but challenges remain to be addressed, according to the General Statistics Office (GSO).

Data from the office showed that in the first nine months of this year, the Vietnamese economy recorded increasing numbers of new recruits, new businesses entering the market and rising average monthly income.

People of working age account for 51.4 million workers, 212,000 more than in the same period last year. The average monthly income increased by VNĐ519,000 (US$21).

According to Phạm Hoài Nam, head of GSO’s Population and Labour Statistics Department, these are the results of more companies entering the market than leaving, as well as improvements in the export-import sector.

From January to September 2024, Việt Nam counted nearly 122,000 new businesses with a total registered capital of more than VNĐ1.16 trillion ($46.5 million) and over 735,000 registered employees.

This represents a 3.4 per cent increase in the number of businesses and registered capital.

Nam added that while the labour market is on the recovery path, multiple shortcomings in human resources quality remain.

Currently, around 37.6 million workers have not completed basic training. Only about 28.5 per cent of workers nationwide are formally trained and certified.

The number of employed workers is on the rise, but the labour market growth is not sustainable, due to a significant proportion of informal employment and unstable jobs.

The last quarter of the year is the peak period for retail, e-commerce and services due to rising shopping and consumption demand, creating more job opportunities for various qualifications during this time.

According to the Hà Nội Centre for Employment Service (HCES), this year-end period will have about 120,000-150,000 job vacancies, mostly for sales, service and technical workers. Salaries range from VNĐ7-20 million ($280-800) per month, depending on workers' qualifications.

However, employers are facing multiple obstacles in recruiting seasonal workers despite the large demand, as many job seekers look for long-term and stable positions.

HCES deputy director Vũ Quang Thành told Voice of Vietnam (VOV): “Inflation and rising living costs have led to workers asking for higher wages and benefits.

“This puts great pressure on businesses, particularly small and medium-sized enterprises, to maintain operational costs while responding to workers’ demands.”

He also noted that the current labour market lacks highly skilled workers. This is one of the major challenges for businesses, especially those in finance and high-tech industries.

Businesses are facing intense competition in attracting talent, which compels them to offer more appealing salaries, benefits and working conditions to recruit and retain their employees.

The increasing number of new businesses can bring opportunities and drive the economy and labour market forward, but the scale of impact depends on the company size, sector and profitability.

It is challenging to find workers with the right qualifications as technology developments and digital transformation require them to constantly update and advance their skillset, said Thành.

Therefore, skill and capacity training for new workers is crucial to meet the recruitment demands of businesses, he added. — VNS