Reports from cities and provinces revealed that during the first quarter of the year the number of applicants for unemployment insurance declined to over 91,300 people, a decrease of nearly 22 per cent year-on-year.

In HCM City alone, the number of applicants for unemployment insurance was nearly 27,000, a reduction of nearly 26 per cent against the same period in 2012.

In the southeastern province of Binh Duong, this number was more than 15,200, a decrease of 35 per cent against the same period last year.

Ha Noi's Job Placement Centre also reported a decrease of nearly 10 per cent in unemployment registration, with over 4,200 people applying for unemployment insurance during the first quarter.

Labour experts attributed such decreases to the extension of time required for unemployment registration from seven days to three months after the workers left their jobs.

The extension was made under Decree 100, an amendment to the old decree on the implementation of the law on unemployment insurance, which took effect from the beginning of the year.

Nguyen Thi Kim Loan, head of the Unemployment Insurance Department under the Ha Noi Job Placement Centre, said this new regulation gave workers more time to deal with procedures required to receive unemployment insurance.

Statistics also indicated that during the first three months of the year, job consultation for those who are out of work were active. A total of nearly 81,000 people, 88 per cent of the applicants for unemployment insurance, had been advised at job placement centres. That represented an increase of 17 per cent compared to the same period last year.

ATM payments preferred

In addition to increasing consultations for the unemployed, job placement centres in cities have been working to simplify the procedures for unemployment insurance by promoting ATM payments.

Nguyen Thanh Van, a former banker living in Ha Noi's Thanh Xuan District, said the new payment method was convenient for both the Government agencies in charge and the unemployed.

"I have more time to focus on looking for a new job as I don't have to come to the Job Placement Centre too many times."

Loan said the new ATM payment method had helped speed up the procedures of unemployment insurance application.

"Now workers have to wait for five days only to receive unemployment insurance."

Since the ATM payment was first applied last July, it has become a popular method of unemployment insurance payment, with about 70 per cent of people choosing this method rather than cash payment, Loan said.

Besides Ha Noi and HCM City, a few provinces including Binh Duong and Dong Nai had also recently begun to apply the ATM payment method for unemployment insurance.

This payment method was yet to be applied in all localities throughout the country, however, because it would require smooth co-ordination among relevant agencies, Loan said.

Source: VNS