Unemployment benefits in Hanoi increased by 36%

According to information on Dan Tri , this unit is synthesizing the unemployment benefit situation in the first 6 months of the year. Preliminarily, the Hanoi Employment Service Center recorded more than 43,574 applications for unemployment benefits, with nearly 10,000 applications in June alone. This number increased sharply compared to other months in previous years and was even higher during the Covid-19 pandemic.

According to Ms. Vu Thi Thanh Lieu, Deputy Director of the Hanoi Employment Service Center, these workers have been unemployed since at least February. After failing to find a job, they came to apply for unemployment benefits, counseling, and job referrals.

Speaking to VietNamNet , Ms. Lieu added that the number of people applying for benefits are mainly unskilled workers working in the manufacturing, electronics, and textile industries. The workforce cut has shifted to labor-intensive industries compared to last year, mainly tourism , hotels, and transportation.

Although the Hanoi Employment Service Center has not recorded any businesses cutting thousands of workers like in the Southern region, hundreds of electronics workers from the same company have come to apply for unemployment benefits.

Most workers who have lost their jobs want to return to the labor market sooner rather than going to vocational training. Many people apply for benefits for 1-2 weeks and then cancel their application because they have found new jobs.

Previously, the General Statistics Office said that the situation of many businesses in various industries and localities cutting orders has occurred since the fourth quarter of 2022 and continued into the second quarter. This has led to hundreds of thousands of workers having their working hours reduced, losing their jobs, affecting the lives of workers.

According to a quick report from localities, the number of workers taking leave from businesses nationwide in the second quarter was about 241,500 people, a decrease of 52,500 people compared to the previous quarter.

The majority of workers taking time off work are foreign-invested enterprises, mainly concentrated in the leather, footwear and textile industries.

Dan Tri reported that the above situation occurred in some provinces such as Bac Giang (9,300 people), Binh Duong (9,800 people), Quang Ngai (10,300 people), Tien Giang (11,900 people), Binh Phuoc (17,000 people), Ninh Binh (19,800 people), Thanh Hoa (98,300 people).

The number of workers who lost their jobs in the second quarter of 2023 was 217,800. The majority of them were workers in the textile, footwear, electronic components and products manufacturing, and wood processing industries.

Forecasting the labor market in the second half of 2023, Mr. Pham Ngoc Toan, Director of the Center for Strategic Analysis and Forecasting, Institute of Labor Science and Social Affairs (Ministry of Labor - Invalids and Social Affairs) said that the labor market also depends on updating the socio-economic scenario.

However, many economic experts and organizations believe that Vietnam's economy in 2023 will still be affected by the world political situation, inflation, rising prices, etc.

According to Mr. Toan, the service and construction sectors will have good prospects for the labor market when the Government effectively implements public investment packages. However, some industries and sectors will be negatively affected in the market, leading to a decrease in labor, such as garment, wood products, and industries with high export value.

Meanwhile, the expected demand for labor recruitment in Hanoi is mainly focused on the demand for recruiting sales staff, electronic component assembly workers, sewing workers, hotel and restaurant service staff, travel and tourism staff, etc. It is forecasted that some industries will have high recruitment demand such as: Tourism and travel services; wholesale and retail; transportation and warehousing.

In addition, some industries are forecasted to experience a reduction in employment due to a shortage of orders, such as: Import-export business; manufacturing of rubber and plastic products; wood processing, etc.

According to the Survey Report on Business Difficulties and Economic Prospects at the End of 2023 by the Private Economic Development Research Board (Board IV), the wave of layoffs may continue in the last months of 2023 due to macroeconomic and internal difficulties of businesses. Of which, about 5,200 out of nearly 9,560 surveyed businesses said they would cut more than 5% of their workforce from now until the end of 2023.

Unemployment insurance is a regime that partially compensates employees' income when they lose their jobs. The monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before leaving work, not exceeding 5 times the basic salary or regional minimum wage.

The benefit period is calculated based on the number of months of unemployment insurance contributions. If you pay 12-36 months, you will receive 3 months of unemployment benefits; if you pay an additional 12 months, you will receive an additional month of benefits, up to a maximum of 12 months.

MH (t/h)

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