The Vietnamese Ministry of Labor, Invalids and Social Affairs has forecast that up to 100,000 workers would be laid off per month, mainly in the fields of tourism, accommodation and catering services, construction, transportation, processing and manufacturing.

The number of people filing claims for unemployment benefits increased by 32% over the same period in 2019, to nearly 690,000 in the first seven months of 2020, or nearly 100,000 per month, compared to 60,000 – 70,000 per month on average in 2019.

Some industries that see the sharpest decrease in years in the number of workers over the same period of 2019 are processing and manufacturing, accommodation and catering services, education and training, wholesale and retail, auto and motorbike repair. 

It is forecast that by the end of the year, 70% of local enterprises and 3.5 to 5 million workers will face difficulties.

In the first half this year, some 29,000 enterprises temporarily suspended operations, up 38.2% over the same period last year. About 540,000 new jobs were created, reaching 35.6% of the plan for 2020 and equal to 73.8% of the same period last year.

As of June 2020, 30.8 million people aged 15 and more were hurt by the COVID-19 pandemic. In particular, 57.3% saw their incomes reduced.

Earlier, the government has approved a VND62 trillion (US$2.6 billion) financial support package for people and businesses affected by the COVID-19 pandemic.

In the second half of this year, authorities will take further measures to boost the labor market and connect supply-demand for laborers and employers. 

Vu Quang Tho, a labor expert, recommended that it is necessary to build a job reporting system to keep businesses operating and avoid layoffs. 

120,000 more people in HCMC to lose jobs due to Covid-19

Some 120,000 additional people from roughly 4,000 enterprises in HCMC hit hardest by the Covid-19 pandemic including tourism, hospitality, transport, construction, clothing and footwear are likely to be laid off until September, according to Le Minh Tan, director of the HCMC Department of Labor, Invalids and Social Affairs.

Some 54,000 workers from nearly 2,000 enterprises in the city lost their jobs in June and July, while the figure was 327,000 from March to May.

Pham Van Tai, vice chairman of the Labor Union of Go Vap District, said Hue Phong Company in the district has planned to suspend some 1,600 employees from work on August 30.

“The district’s Labor Union has worked with the Go Vap Social Insurance to buy household health insurance for 198 of their female workers who are pregnant and will give birth between September and November,” Tai stated.

According to Tan, two teams led by two deputy directors of the HCMC Labor, Invalids and Social Affairs Department are keeping a close eye on the condition of enterprises in the city.

“The department has encouraged enterprises to reduce the shifts and working hours of their workers. It has also helped the enterprises access the Government’s VND62-trillion relief package so they can pay the salaries of their employees during this difficult time,” he said.

Besides supporting enterprises, the department is also assisting workers who have lost their jobs to access this package.

The HCMC Social Insurance said that as of August 10, it allowed 318 enterprises with more than 32,000 employees to delay social insurance payments. SGT/Hanoitimes

Nhat Minh

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