VietNamNet Bridge – Experts are worried about a three-fold increase in unemployment during the first half of the year.

Road workers on the Thuy Duong - Thuan An road in the central province of Thua Thien - Hue. People with seasonal jobs, such as road workers, often suffer from unemployment, while others quit their jobs to claim insurance benefits. (Photo: VNS)

Of this number, more than 119,000 claimed unemployment allowance, according to the Ministry of Labour, Invalids and Social Affairs.

Director of the Ha Noi Jobs Placement Centre Vu Trung Chinh said that up to September, about 10,000 people had registered as unemployed, more than double that for the last whole year.

However, in HCM City, the unemployment figure was about 50 per cent less than in Ha Noi, according to deputy director of HCM City Jobs Placement Centre Nguyen Cao Thang.

The economic recession was blamed for the increase in jobless people claiming unemployment insurance throughout the country, said Dieu Ba Duoc, director of the Social Insurance's Department of Policies on Insurance Implementation.

However, officials are concerned that some people have quit their jobs just to get unemployment benefits.

In Ha Noi, it's estimated that 10 per cent of people registered as unemployed "for their own profit," according to the Jobs Placement Centre.

The percentage was much higher in southern Dong Nai Province where those really out of work comprised only about 50 per cent of those claiming benefits, said deputy director of the provincial social insurance Pham Minh Thanh.

This was because workers have to pay low insurance fees, he added.

Duoc said that a worker with a monthly salary of about VND2 million (US$96) had to pay only 1 per cent of their salary, equal to VND24,000 ($1.2) for the insurance – the same as their employers.

However, if workers are declared out of work, they can claim an allowance of VND3.6 million ($172) for three months – after working for 12 months.

In addition, enterprises do not have to pay any allowances if the workers get an allowance from the fund.

"Some workers register for unemployment allowance, then, with the collusion of their employers, return to work," said Duoc.

While the cheats profit, some unemployed workers lose out completely. This happens if their employers go bankrupt and do not pay into the insurance fund.

According to Deputy Minister of Labour, Invalids and Social Affairs Nguyen Thanh Hoa, the Law on Unemployment Insurance should be amended to correct this situation.

The policy on unemployment benefits came into operation two years ago. Since then, more than 7.4 million people have registered for insurance throughout the country.

VietNamNet/Viet Nam News