Aging population and job market for elderly people in Vietnam

According to the General Statistics Office, by 2036, Vietnam will officially enter the aging population period, with more than 21 million elderly people, accounting for 19.48% of the total population. According to experts, in the next 10 years, there will be tens of millions of elderly people who need to start a business, receive vocational training and find new jobs.

That poses a huge problem for society. If well developed, this will be an important labor force contributing to economic growth. However, even though they are still healthy, have expertise, high skills, and a lot of experience, finding a suitable job for the elderly is not easy.

Elderly people are still healthy, have expertise, high skills, and a lot of experience... but finding a suitable job is not easy. Photo: Illustration

In the world , many countries have anticipated the difficulties and have many solutions to deal with population aging. One of the effective solutions is to "take advantage" of the elderly as a special labor force. This makes the labor market not passive in the labor supply, at the same time, helping elderly workers "live happily, live healthily", and be financially independent. In Japan, the Law on the Employment of the Elderly creates conditions for elderly workers to extend their working time. In 2021, this country still has more than 70% of the elderly over 60 years old participating in the labor market. In the US, in 2024, 13 million elderly people aged 65 and over are still working, an increase of 55% in the past 10 years (2014-2024). Or in Singapore, the elderly over 60 years old (33% of the total population) have not retired.

Creating suitable jobs for the elderly in the context of population aging is an issue that needs attention. Photo: Illustration

A survey of more than 3,500 people in the Asia- Pacific region, including Vietnam, showed that: Unlike previous years, more and more employees intend to retire later, save more, and want to achieve "financial security" after retirement, due to the influence of sharing and advice from relatives of the previous generation. Specifically, the majority choose to retire at an average age of 64, the reasons for this choice are: Because they love their current job (46%); because they need to save more (61%); because they want to maintain physical and mental activities for themselves (49%)...

Speaking to the media, Prof. Dr. Giang Thanh Long, Senior Lecturer, School of Economics and Public Management, National Economics University, said that through three national surveys on the elderly (2011, 2019, 2022), the school discovered that the income of the elderly for daily life accounts for 35% - 38%, from daily self-employment and tends to increase; the part that depends on children is still high but tends to decrease. Therefore, jobs with uncertain and unstable income will greatly affect the elderly.

According to statistics from the Ministry of Labor, War Invalids and Social Affairs (MOLISA), workers and the elderly who have to go to work only receive a salary equal to about 38.5% of the average salary in the market. Workers in agencies, units, and enterprises who are retired; those working in the agricultural and forestry sectors... although their physical strength has decreased, many of them still have enough health, intelligence, experience, and the need to start a business and learn a trade to switch to a new, more suitable job.

However, in reality, for workers aged 60 and over, the jobs they find are mainly security guards, housekeepers, and elderly caretakers. Many elderly people have the ability and experience to invest in production and business but lack capital...

The most concerning issue today is that although job placement centers are available in all provinces and cities, there are no job centers specifically for the elderly. The lack of information on employment and specific policies to encourage employment for the elderly are also challenges in the process of creating jobs, stabilizing life and increasing income for the elderly.

In addition, Vietnam does not have specific regulations or incentive programs that allow the elderly to participate in paid jobs that suit their needs; such as flexible working hours or shortened working hours during the day. Elderly people often work in the informal sector, do freelance work or do unpaid household work... The lack of regulations has limited the opportunities for the elderly to participate in the formal sector.

A typical model of elderly people doing good business in Vinh Phuc province. Photo: Thanh Ha

Mr. Pham Dai Dong, Head of the Elderly Department, Department of Social Protection (Ministry of Labor, Invalids and Social Affairs) also said that there should be policies on loans with preferential interest rates, the elderly do not have to mortgage assets and have guarantees from the Elderly Association at the commune level so that they can produce and do small and medium-sized business. In addition, there should be policies on exemption and reduction of vocational training fees to change careers in accordance with the actual situation of the locality where the elderly reside; there should be policies on exemption and reduction of technology transfer fees, encouraging and supporting the application of science, technology and new technology in production and business.

Prof. Dr. Giang Thanh Long shared that the Government and the whole society need to have specific policies. Therefore, it is necessary to eliminate prejudices against the elderly, especially in areas such as education and health care. Authorities need to support training, job transition, and preferential loans for the elderly; promote connections between businesses and elderly workers, creating conditions for them to participate in the labor market in accordance with their abilities. Experience from Japan shows that requiring businesses to create conditions for employees to work until the age of 70, as well as allowing employees to choose the time to receive their pension more flexibly, has helped the elderly have suitable jobs and be able to decide when to retire.

According to the Central Committee of the Vietnam Association of the Elderly, data compiled from localities shows that by 2023, Vietnam will have more than 7 million elderly people directly working and doing business, of which more than 50% of the elderly are between the ages of 60-69; more than 19% of people between the ages of 70-79 are still working and generating income... The whole country currently has 221,000 elderly people who are owners of production and business establishments that produce valuable products, contributing to the construction of their homeland and country. Many elderly people have started successful businesses, affirming their position and role.

Mr. Nguyen Dinh Phu, a member of the Gia Lai Province Elderly Association, got rich from coffee trees. Photo: Thanh Ha

According to Deputy Director of the Department of Support, Ministry of Labor, War Invalids and Social Affairs (MOLISA) Nguyen Ngoc Toan, in the long term, it is necessary to design open and flexible vocational training, employment and lifelong learning systems to support vulnerable groups, including the elderly. Currently, to support the elderly in supporting vocational transition training for the elderly, the MOLISA has submitted to the Prime Minister Decision No. 2156 dated December 21, 2021 approving the National Action Program on the Elderly, period 2021-2030. The program sets out specific goals as follows: In the period 2022-2025, at least 50% of the elderly with the need and ability to work will have jobs, at least 20,000 elderly people will be supported to start a business and receive vocational transition training. Phase 2026-2030: At least 70% of the elderly who have the need and ability to work will have jobs, at least 30,000 elderly people will receive support to start a business, receive training to change careers...

The Ministry of Labor, Invalids and Social Affairs also proposed to supplement regulations on policies to support job transition and employment support for the elderly, including: vocational training support, consulting, and job referrals for older workers; consulting and job referrals for older workers; preferential policies when employing older workers (loans, participation in public employment policies, etc.).

Source: https://ngaymoionline.com.vn/dan-so-gia-va-thi-truong-viec-lam-cho-nguoi-cao-tuoi-viet-nam-56128.html