Following the first issue of the "Vietnam Employment Trends 2009", the second issue of a planned series of MOLISA reports describes the labour market situation in Viet Nam. "Vietnam Employment Trends 2010" provides an analysis of the latest labour market information with the purpose of assessing the impact of various economic challenges that we had to face in recent years. This includes the impact of the financial crisis on employment, working conditions and labour market trends as well as projections of these trends to 2015 and 2020.
Amid a “fragile labour market” marked by persistent high unemployment, “slack” jobs growth and declining wages, the International Labour Office (ILO) urged the Group of 20 to intensify its focus on “productive employment and job-intensive growth policies” at its upcoming summit in Seoul. ILO Director-General Juan Somavia is expected to attend the meeting.
In a new statistical update prepared for the 11-12 November G20 summit, the ILO says unemployment increased in 10 countries of the G20 in 2010 compared to 2009, but declined in eight. It also says that most emerging economies have seen a rise in employment and a decrease in unemployment in 2010.
Recent developments in the labour market situation of Vietnam can be encapsulated into the following seven major components (not necessarily in order of importance):
1. Large increases in the population between 1997 and 2007 have added to the country's labour force, placing pressure on the Vietnam labour market. However, future population growth is not expected to be as high as the previous decade.
2. There has been strong GDP growth with consequent employment gains and improved labour productivity, supporting poverty reduction efforts.
3. There has been a downward trend in labour force participation rates and also employment-topopulation ratios. Contributing to this shift are youth remaining in school longer and adults taking earlier retirement.
4. A very large component of total employment falls into the category of being vulnerable to lacking decent work.
5. There have been significant sectoral shifts in employment with a decreasing proportion in agricultural employment, and rising employment in the industrial and services sectors.
6. Unemployment is not presently a problem in the country, with the unemployment rate remaining stable and very low over the past decade.
7. While Vietnam remains largely a rural population, it is gradually shifting toward being more urban.