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Unsustainable labor market development

In recent years, the labor market in Ha Nam province has continuously recorded strong movements, especially in the context of promoting investment attraction, industrial and service development and international economic integration. In the first quarter of 2025, employment indicators, the number of newly established enterprises and labor recruitment needs all grew positively... However, behind those results, there are still many concerns about the unsustainability of the labor market, the gap between labor supply and demand, and the risk of losing local human resources.

Báo Hà NamBáo Hà Nam26/06/2025

According to the Provincial Statistics Office, Ha Nam's current workforce is about 480,000 people, accounting for nearly 53% of the total population; the number of people working in economic sectors is nearly 470,000 people, accounting for more than 98% of the workforce. In the labor structure, industry - construction accounts for the largest proportion (52.42%), followed by services (30.95%), agriculture - forestry - fishery (16.63%). In the first quarter of 2025, the whole province created new jobs for 7,325 people, an increase of 11.2% over the same period last year, reaching 29.3% of the annual plan. In addition, more than 6,000 people were given part-time jobs; more than 6,000 people received job counseling and vocational training. In the first 4 months of 2025, 403 newly established enterprises were established in the province with a total registered capital of nearly 7,500 billion VND. Currently, the whole province has about 6,300 operating enterprises, in industrial parks alone, there are about 120,000 workers, of which 40% are from other provinces.

According to Mr. Nguyen Quang Tuan, Director of the Provincial Employment Service Center, behind these positive indicators, there is still a paradox of labor supply and demand, when the demand for recruitment is increasing but the local labor supply is increasingly difficult. This year, local businesses need to recruit about 100,000 workers, an increase of 20,000 to 30,000 people compared to last year, but recruitment is not easy because the local labor source is exhausted. The imbalance of supply and demand is clearly shown in the labor utilization index, the number of workers in industrial production enterprises in the first 4 months of 2025 decreased by 0.03% compared to the same period last year, although there was a slight increase month by month. In particular, the mining industry decreased sharply by 21.19%; the processing, manufacturing, and electricity production industries also decreased compared to the same period; the labor utilization index of the entire industry decreased by 1.38%...

The Employment Service Center organizes a trading floor in two forms, direct and online, to expand the supply-demand connection for businesses and workers.

Not only is there a shortage in quantity, the Ha Nam labor market also lacks quality. Enterprises are in dire need of skilled workers, with professional skills and the ability to adapt to the modern industrial working environment. However, most of the local unskilled workers have not undergone specialized training and have limited soft skills. According to a representative of Nam Vang Ha Nam Joint Stock Company, located in Chau Son Industrial Park (Phu Ly City), the company is urgently recruiting about 150 workers, with income (including salary, allowances, bonuses, overtime...) ranging from 9.5 to 13 million VND/month depending on the position and shift. However, over the past several months, the number of applications submitted has been very low. In addition to the recruitment channel of the Employment Service Center, businesses apply many other recruitment channels with the goal of recruiting the desired workers... Similarly, QuanShen Technology Co., Ltd. (Thanh Liem Industrial Park) is recruiting nearly 100 workers with a basic salary of 6.5 million VND/month, plus allowances, bonuses, and overtime that can be up to 12-18 million VND/person/month - a fairly high salary compared to the general level. However, according to the company representative, recruitment is still very difficult, and the company even has to expand the age of recruitment to 50 years old. Many workers have come for interviews but then do not return. To encourage workers to introduce more friends and colleagues, many businesses have had to introduce a "hot" bonus policy. QuanShen Technology Co., Ltd. is currently applying a bonus policy of 1 million VND for each new worker successfully introduced by a former employee and working stably for more than a month. However, the effect is still not as expected.

Faced with the difficult problem of human resources, the Employment Service Center has had to promote the form of “offshore fishing”, organize online trading sessions, and connect with centers in neighboring provinces to expand the scope of recruitment. However, relying too much on immigrant workers also leads to the risk of unstable human resources, increased costs and difficulty in long-term commitment.

Mr. Nguyen Quang Tuan, Director of the Provincial Employment Service Center, said: In order to develop the labor market sustainably, in recent years the province has built and implemented a long-term human resource strategy, linking vocationaleducation - business needs - attraction policies. Vocational training has shifted more strongly towards practice, closer to production reality. Vocational training institutions, vocational education centers, and continuing education centers have strengthened their links with businesses to train "orders", providing human resources according to specific orders, overcoming the situation of training out of sync with reality. On the part of the Provincial Employment Service Center, in addition to focusing on building a labor market information system, it also diversifies forms of job transactions to help workers access recruitment information in a transparent and convenient manner...

However, in the long term, there is still a need for a policy to retain workers. Accordingly, in addition to raising the regional minimum wage, the province needs to speed up the progress of social housing projects, along with services for workers and laborers in industrial parks. A stable and friendly living environment will help workers stay long-term, thereby contributing to stabilizing production. The Ha Nam labor market is moving towards modernity, dynamism, associated with industrialization, but without a systematic and sustainable human resource development strategy, it will easily fall into a vicious cycle: lack of labor - increased costs - reduced competitiveness. Solving the labor problem is not only a matter of businesses or the labor sector, but requires the synchronous participation of the entire political system, along with the initiative of workers in improving skills and career orientation.

Jiangnan

Source: https://baohanam.com.vn/xa-hoi/lao-dong-viec-lam/thi-truong-lao-dong-phat-trien-chua-ben-vung-166809.html


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