One in ten young people in Vietnam is unemployed and young workers currently employed are three-times more likely to lose their jobs than older age groups, according to a report from the Ministry of Labor, Invalids and Social Affairs (MoLISA).
A survey by the National Assembly Committee on Culture and Education on the implementation of policies and regulations on employment for young people in the 2020-2023 period shows that businesses, particularly those at industrial parks, were seriously affected by Covid-19 and this pushed up unemployment among young Vietnamese.
In 2020, the unemployment rate among young people, especially those in the 15-24 age group, was 7.61 per cent, which then rose to 8.55 per cent in 2021; the highest in a decade.
The pandemic was basically brought under control in 2022 and the unemployment rate among young people came down to 7.7 per cent, equivalent to 37.6 per cent of all unemployed.
Deputy Minister of Labor, Invalids and Social Affairs Le Van Thanh said the unemployment rate among young people, especially the 15-24 age group, continues to be a challenge for Vietnam’s economy.
The number of young workers in the informal sector is forecast to continue increasing due to greater competitiveness in formal sectors. Scientific and technological advancements will also result in more unemployment, because many people fail to meet job requirements.
Meanwhile, many businesses continue to face challenges and difficulties, particularly those in the fields of industry and services, which may lead to higher unemployment among young people.