The unemployment rate among university graduates and those holding higher degrees in the third quarter of 2017 was 4.51 percent, compared to 3.63 percent in the previous three months, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA).

Young people read vacancy information at the Hanoi Employment Service Centre

MoLISA released a report on Vietnam’s labour market in the third quarter in Hanoi on December 26.

Accordingly, unemployment between July and September declined slightly, 6,800 from April-June and 42,900 from the same period last year, to 1.07 million people of working age. 

However, 237,000 persons with at least a bachelor’s degree were unemployed, up 53,900 from the previous quarter.

Dao Quang Vinh, Director of MoLISA’s Institute of Labour Science and Social Affairs, said the employment number was 53.77 million, rising by 365,900 from the second quarter and 496,900 from a year earlier.

The processing and manufacturing industry recorded the strongest increase in the employment number. It was followed by the construction, transportation-storage, and property business sectors.

Meanwhile, the number of people working in accommodation and eating services saw the sharpest fall, both month on month and year on year.

The report showed that there were 22.92 million salary earners in the third quarter, compared to 22.84 million between April and June. The monthly income from their main jobs averaged 5.36 million VND (over 236 USD), increasing by 162,000 VND from the second quarter and 434,000 VND from a year earlier.

MoLISA predicted Vietnam’s GDP growth rate at 7.5 – 7.7 percent in the fourth quarter and over 6.7 percent in 2017, which would have positive impacts on the labour market. 

The trend of business establishment and operation resumption along with growing export driven by the rosy global economic situation would also positively influence labour demand in some industries, the ministry added.

More people join work force in Q3

Positive developments were seen in Việt Nam’s labour market in the third quarter of this year.

The country recorded a labour force of 53.77 million in the third quarter with an increase of 366,000 people or 0.69 per cent compared to that of the second quarter.

About 496,900 people had been added to the labour force since last year’s third quarter, equal to an increase of 0.93 per cent year on year.

The report also said that 31.9 per cent of working people were in urban areas while the remainder were in rural areas.

During the last quarter, on average, a wage worker received VNĐ5.6 million (US$246.5) monthly, 3.1 per cent higher than that of the second quarter, and 8.8 per cent higher than that of the same quarter last year.

However, the average income of female workers – VNĐ5 million – was still lower than that of their male counterparts – VNĐ 5.63 million.

The third quarter of this year saw an unemployment rate of 2.21 per cent with 1.074 million people unemployed.

As many as 237,000 people graduating from universities or higher education were unemployed, meaning the unemployment rate for this group was 4.51 per cent, while the rate of the previous quarter was 3.63 per cent.

More than 317,400 people received job consultancy last quarter. Nearly 50,000 people or about 25.5 per cent of people receiving unemployment insurance were introduced to new jobs.

Nearly 11,000 unemployed people were assisted with job training.

Đào Quang Vinh, director general of the Institute of Labour Science and Social Affairs said that in the last quarter, Việt Nam’s labour market would see more positive changes thanks to the outlook for the country’s socioeconomic development including economic growth for the last quarter of 2017 expected to reach 7.5-7.7 per cent.

“More companies are expected to be established or resume operations, and export is expected to increase thanks to a better global economy. These could bring positive impacts to labour in some areas like processing, construction, logistics and real estate,” he said.

The institute forecasts that the country’s labour force will reach 53.9 million in the last quarter of this year. 

VNA/VNS