ID :
65292
Thu, 06/11/2009 - 12:08
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Unemployment would continue to increase

Hanoi (VNA) – Unemployment would continue to increase until the end of this year
as a result of a significant decline in export revenue and foreign direct
investment, said Deputy Minister of Labour, War Invalids and Social Affairs Pham
Minh Huan.

Huan said the global crisis had affected Vietnam ’s economy in many ways,
including the employment situation. More than 1,260 enterprises faced
difficulties, leaving nearly 65,000 people out of work in the first quarter of the
year.

Most affected were workers in handicraft villages, processing of seafood and
agricultural products, electronics, real estate, small and medium enterprises and
exporters, especially in the garment sector, he said.

However, some cities and provinces were in need of workers, including Ba Ria-Vung
Tau, Binh Duong and Can Tho in the south.

HCM City was an example as it had nearly 21,900 workers unemployed in the
first five months of this year yet businesses in the city had jobs for about
61,500 workers.

HCM City Employment Introduction Centre director Trinh Thi Quynh Chi said the main
reason for the shortage of workers was low salary. A survey of 100 workers in Tan
Binh Industrial Park showed most were on a monthly salary of 1-2 million VND; 45
percent said it was not enough for living; 46 percent said it was enough and the
remaining 9 percent had savings.
Director of HCM City ’s management board of industrial parks and exporting
processing zones Nguyen Thanh Tung said local parks and zones needed 12,000
workers in the garment, food processing, electronics and mechanical sectors.

Tung said the figure was taken from job vacancy records at job placement
introduction centres and did not take into account those firms who did not use the
centres.
Employment Department director Nguyen Dai Dong said the shortage of workers only
occurred in certain areas and it may be that workers moved to other areas or
companies.
The economy’s degradation had not ended, Dong said. It was predicted that
300,000 more workers would lose their jobs before the end of this year.

The demand for workers in rural handicraft villages had reduced by 50-70 percent
this year, making up to 30,5000 redundant people, concentrating in northern
provinces, including Bac Ninh, Hai Duong and Ha Nam.

About 7,000 people working overseas had come back to the country before their
contracts expire this year. The figure was predicted to rise to 10,000 people,
almost all from the Republic of Korea , Japan and Malaysia .

International Labour Organisation labour market project coordinator in Vietnam
John Stewart said to respond effectively to the crisis, the Government must first
identify the real nature of the problem.

“Improved data collection and analysis is the key to doing this,” Stewart said.


Director of the organisation’s office in Vietnam Rie Vejs-Kjeldgaard said workers
most vulnerable during the crisis were those in small and medium-sized enterprises,
contract and temporary workers, internal and overseas migrant workers, women, young
workers and the poor.

“This will be further compounded by the fact that the Vietnamese economy will
continue to integrate into both the regional and the global economy. This will
increase competition further,” Vejs-Kjeldgaard said.
The number of people unemployed in 2009 could increase by 29-59 million globally,
and by 9-26 million in the Asia Pacific region, compared to 2007, the organisation
predicted.

This meant the number of jobless people in the Asia Pacific region as a whole
could top 112 million. Furthermore, the number of workers in so-called vulnerable
employment could rise by 52 million, amounting to a total of more than 1.1
billion.

Senior economist at the organisation’s Regional Office for Asia and the Pacific
Gyorgy Sziraczki said: “Given the unprecedented depth of this economic crisis we
must be particularly concerned about the vulnerable and the poor.”

Sziraczki said governments should take the opportunity to invest in their labour
force – through things like skills training, health and social protection – to
ensure recovery was as quick and inclusive as possible.-Enditem

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