+ Growth of the working population in both urban and rural areas: Between 2015 and 2019, the number of workers in both urban and rural areas increased.. + Shifting the structure of labor
Trang 1NATIONAL ECONOMIC UNIVERSITY NEU BUSINESS SCHOOL
NEU BUSINESS SCHOOL VIEN QUAN TRI KINH DOANH
GROUP RESEARCH:
EMPLOYMENT SITUATION IN VIETNAM
FROM 2015 TO 2022
Group 72 Members : Đễ Thanh Bình
Lương Thị Bạch Dương
Nguyễn Văn Nghĩa Nguyễn Hoàng Hạnh Nguyễn Trung Kiên Nguyễn Thuỷ Linh Nguyễn Bảo Linh Hoàng Thị Mỹ Tâm
Trần Thị Hà Phương
Class Subject
: EBDB 5 : Macro Economic
Ha Noi, May of 2024
Trang 2TABLE OF CONTENT
2.7 n6 n 3
LI, Employment Conditions and Job QHAÍÍEP à Ăn HH HH Hà tre Is ›› Is I8 o0 2052061155 1ã I5 020207272 Ề00Ẻ5ẺẼẺ5aŠắ 19
PB a2 ng ố 20
2.1 From 02062206 3 20
P5020 92005 02)/2 20110 {ad 22
3 Employment Contracts and Social INSUrance: ác HH TH TH HT TT HH vn gu 23 ENNĐ0i09/a.ii9 nn 23
Trang 3006 .ốanane 27
4.2 Impact of the Covid pandemic on employmenf cond[fiOIS: - - cà cc cà 28
TỰ UNEMPLOYMEINT À ST HH HH HH HH HH HH TH TH Hà HH HH HH th Hy 28 I6 22a 7ẽanẽnnnn nen Ắ 28
2 Unemploymert rale aqmong the lAbOHF ÍOFC€ cà TH TH SH HH TH HT HH TH HH Hư 29
LẠ 7772 227//ƒ/77/2/)/77Aÿ/0000nn8nẺ88a 32 lun 22a 7ẽanananne 32
VI ECONOMTCALLY INACTIVE POPULATTION SH Ha HH HH Hà ey 36
2 Froin 2020 †O 2)22: ST ST ST TT TH TT TH TH TH TH T TH TH T TH Tàn T HH Hà HT 36
Trang 4+ Growth of the working population in both urban and rural areas: Between 2015 and
2019, the number of workers in both urban and rural areas increased However, the
growth rate in urban areas is faster than 1n rural areas
+ Shifting the structure of labor from rural to urban: The percentage of the labor force in urban areas has increased throughout this period, while the percentage in rural areas has slightly increased
+ Economic growth and urban development: The increase in the urban working population can reflect economic development and employment opportunities in Vietnam's major cities and urban centers
12 From 2.020 to 2022:
Table 1.2: Number and distribution of workforce from 2020 to 2022
Source: gso.gov.vn
Rural: 32.49
- Remark:
+ The total number of employees decreased from 54.942 million in 2020 to 50.6 million
in 2021 before rising to 51.7 million in 2022 This may reflect fluctuations in the labor market or other economic factors
+ The distribution of the workforce across regions also saw slight fluctuations between
2020 and 2022 The number of employees in urban areas increased from 18.17 million
in 2020 to 19.21 million in 2022, while the number of employees in rural areas decreased from 36.67 million to 32.49 million during the same period
3
Trang 5+ Despite a slight decrease in the total number of employees, the number of employees in urban areas has increased throughout the period, while the number of employees in rural areas has decreased This may reflect migration trends or fluctuations in industry and the economy
+ The sharp decrease in the number of workers during this time 1s due to the impact of the Covid-19 epidemic The Covid-19 pandemic that appeared in Vietnam from January 1,
2020 has directly affected the labor and employment situation in sectors and in all provinces and centrally-run cities In particular, the most obvious impact in the second quarter of 2020 when the Covid-19 epidemic situation was complicated, many infections in the community appeared and especially the application of social distancing regulations was thoroughly implemented in April 2020 As of September 2020, the country had 31.8 million people aged 15 and over negatively affected by the Covid-19 epidemic, including people who lost their jobs, people who had to quit / quit their jobs alternately, had their working hours reduced or their incomes reduced Up to 68.9% of employees have reduced income (at a mild level), the number of people who have reduced working hours/distance breaks/alternate breaks accounts for up to 40% of labor participants, and the number of people forced to temporarily take a break or suspend production and business accounts for 14% (General Statistics Office, 2020a)
=> COVID-19 has negatively impacted Vietnam's labor market, causing the size of its workforce to decline, unemployment to rise and the distribution of labor to change
2 Labor Force Participation Rate:
2.1 From 2015 to 2019:
Unit: percent
+ However, there's a significant disparity between urban and rural areas The usage rate
in rural areas (above 80%) is higher compared to urban areas (below 70%) throughout the period from 2015 to 2019
+ In both types of areas, there's a slight fluctuation in the data The usage rate decreased slightly from 2015 to 2017 before experiencing a slight increase in 2019
+ Despite overall stability, the fluctuations in each area may reflect specific economic, social, and political factors influencing service usage within communities
2.2 From 2020 to 2022:
Trang 6Unit: percent
before rising to 70.2% in 2022 Meanwhile, the rate in urban areas has held steady at
around 65% throughout the period
+ The decline in rates in rural areas between 2020 and 2021 could be a noteworthy point This may reflect particular economic or social changes in rural areas
+ However, despite these fluctuations, rates in rural areas remained higher than rates in
urban areas throughout the period
e COVID-19 has also severely impacted the labor force participation rate during this time Specifically, the labor force participation rate decreased:
- 2020: Down 2.8 percentage points compared to 2019
- 2021: Continued decline, to a 10-year low of 54.3%
- 2022: Gradual recovery but still below pre-pandemic levels
® Cause:
- Job reduction: Due to the impact of COVID-19, many people lost their jobs or worked inadequate hours
- Leaving the workforce: Some workers, especially women, have left the workforce to
care for families due to school closures or epidemics
II Employment:
1 Overview of the labor force in Vietnam from 2015 to 2022:
1.1 From 2015 to 2019:
Properties Year Male(%) Female (%) | Urban (%) | Rural (%) Percentage (%) 2015 51.80 48.20 31.20 68.80 Percentage(%) 2016 51.90 48.10 31.40 68.60 Percentage (%) 2017 52.00 48.00 31.80 68.20 Percentage (%) 2018 52.20 47.80 32.30 67.70
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Percentage (%)
2019 | 52.70 47.30 | 32.40 | 67.60 |
Table 3.1: Structure of the labor force aged 15 and older divided by urban and rural areas
and genders from 2015 to 2019 Source: gso gov.vn The labor force aged 15 and over in both urban and rural areas showed little change from
2015 to 2019 Specifically, in urban areas, workers aged 15 and over accounted for 31.20% of the population Conversely, in rural areas, the number of workers aged 15 and over was
higher than 1n urban areas from 2015 to 2022 In 2015, 68.80% of the population were in rural
areas This figure slightly decreased by 0.6% in 2017 and observed a substantial decrease in
2019 (67.60%)
Overall, the labor force comprised more men than women during the years surveyed The percentage of male workers increased from 51.80% in 2015 to 52.70% in 2019, fluctuating throughout the years The number of female workers over the age of 15 also varied slightly across the years, but generally, there was a balance in the labor force between men and women
1.2, From 2020 to 2022:
Calculation Year Male (%) | Female (%) | Urban(%) | Rural (%) Structure (%) 2020 52.60 47.40 33.10 66.90 Structure (%) 2021 53.48 46.52 36.66 63.34 Structure (%) 2022 53.24 45.76 37.16 62.84
Table 3.2: Structure of the labor force aged 15 and older divided by urban and rural areas
and genders from 2020 to 2022 Source: gs0.gov.vn
In 2020, the labor force was characterized by a slightly hher proportion of males at 52.60% compared to females at 47.40% Urban areas accommodated 33.10% of the labor force, while the majority, 66.90%, resided in rural regions The gender gap was evident, with males dominating the workforce and a substantial rural presence indicating the importance of agriculture and rural livelihoods
Moving to 2021, the composition of the labor force underwent slight changes Male participation increased marginally to 53.48%, while female representation decreased to 46.52%, Urbanization continued its upward trajectory, with urban participation rising to 36.66%, accompanied by a decrease in rural participation to 63.34% These shifts suggest a trend towards urban employment and possibly economic opportunities in urban areas, impacting the overall distribution of the labor force
In 2022, the labor force structure continued to evolve Male participation remained
relatively stable at 53.24%, while female representation decreased further to 45.76%
Urbanization accelerated, with urban participation reaching around 37.16%, while rural participation declined to approximately 62.84% These trends underscore the ongoing
6
Trang 8urbanization and changing dynamics in the labor market, with implications for economic development and societal transformation in Vietnam
2, Employment-to-population ratio for those aged 15 and over
2.1 From 2015 to 2019:
Table 3.3: Percentage distribution of employment-to-population ratio in 2015 and 2019
Employment-to-population ratio (%) Residence/ Socio-economic region
Entire country 75.55 75.025
Northern Midlands and Mountains 84.15 83.925
Red River Delta 72.675 72.7
North and South Central Coast 76.2 76.6
Central Highlands 83.375 82.375
Of which: Ho Chi Minh city 67.025 65.575
Source: gso gov.vn Generally, the employment-to-population ratio, ranging from 65% to 85%, remained fairly consistent between 2015 and 2019 From a high of 75.55% (entire country) in 2015, the ratio has steadily declined, reaching 75.025% in 2019 This indicates a decrease in the proportion of the working-age population that is employed For instance, Ha Noi city, which had a ratio of 68.65% in 2015, dipped to 68.35% in 2019 The Mekong River Delta also
shows a similar trend, with a drop from 73.85% to 72.375%
2.2, From 2020 to 2022:
Socio-economic regions Employment-to-population ratio (%)
Trang 9In 2021, the first quarter saw the highest employment-to-population ratio (67.2%), attributed to the effective control of the pandemic in the fourth quarter of 2020 and the first quarter of 2021 However, by the third quarter of 2021, the complex pandemic situation in Ho Chi Minh City and southern provinces led to a decrease in the national employment-to- population ratio to its lowest level of 63.2% The Southeast and Mekong River Delta regions experienced the highest declines in this ratio during this quarter, dropping by 10.1% and 5.7% respectively By the fourth quarter of 2021, as the pandemic situation came under control, there were signs of gradual recovery, with the employment-to-population ratio reaching 65.5%
In 2022, the employment-to-population ratio stood at 50.9% (meaning that out of 100 people, only about 51 were employed and generating income), significantly lower than two years prior Additionally, this ratio for females was 6.8% lower than that for males At the
regional level, the Central Highlands, Mekong River Delta, and Southeast regions were the
three regions with the highest employment-to-population ratios in the country, with ratios of 58.6%, 53.1%, and 52.6%, respectively
3 The proportion of the trained employed population
Trang 10
Residence Socio-cconomic region | Total
Entire country 199 40 L9 14 as Entire country ; 226 37 47 37 10.5
Male 25.0 63 52 " 3
Ho Chi Minh city 374 SA 49 5 2s
Mekong River Delta
Table 3.5 and 3.6: Share of employed population who have undergone any training, 2015 and 2019
Source: gs0.gov.vn
In 2015, the percentage of trained workers was lowest in the Mekong River Delta (11.4%) and highest in the Red River Delta (27.5%) The share in the two most economically developed centers of Vietnam, Hanoi and Ho Chi Minh City, was nearly double the national average (39.4% and 34.1%, respectively)
Moreover, regarding workers with university qualifications or higher, the distribution varied across regions Hanoi and Ho Chi Minh City had the highest concentration of employed laborers with university degrees or higher (accounting for 21% and 20%, respectively)
These findings suggest that the quality of employment in Vietnam varies by region and is generally low A skilled workforce is crucial for sustainable development, higher income, and
to meet the demands of modern technology and management practices in industries
When it comes to 2019, in the Red River Delta and Southeast, Hanoi and Ho Chi Minh
City consistently stand out as the two cities with the highest percentage of skilled employed individuals, at 47.9%% and 37.1% respectively, which were over 8% and 3% higher compared to 2015 This trend can be attributed to several key factors Firstly, these cities boast elevated living standards and income levels within the country, making them attractive hubs for employment Additionally, they are densely populated and serve as focal points for abundant job opportunities, superior training facilities, and a robust demand for highly skilled labor.) In regard to the share of workers with university qualifications or higher varied across regions, Hanoi and Ho Chi Minh City have concentrated most employed laborers who have graduated from university and above (accounting for 27.3% and 21.5%, respectively)
=> Moreover, as the economic, political, and cultural epicenters of Vietnam, Hanoi and Ho
Chi Minh City host a multitude of businesses, government agencies, and large organizations, offering a plethora of employment prospects that necessitate advanced qualifications The universities, colleges, and vocational training institutions in these cities are renowned for their superior educational standards, equipping workers with enhanced professional expertise and practical skills
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=> Furthermore, the substantial demand for highly qualified labor from enterprises and institutions in these urban centers significantly contributes to the availability of suitable positions for trained individuals This comprehensive environment elucidates why Hanoi and
Ho Chi Minh City exhibit a higher proportion of trained workforce compared to other regions
in Vietnam
3.2 From 2020 to 2022:
Socio-economic Total Graduate Total Graduate Total Graduate
regions (%) and above (%) and above (%) and above
Table 3.7: Proportion of trained employed population from 2020 to 2022
In 2020, Vietnam had approximately 12.7 million trained employees, accounting for 23.6% of the workforce The lowest rate of trained workers was observed in the Mekong Delta region (14.6%), while the highest was in the Red River Delta (32.2%) In the country's two major socio-economic hubs, Hanoi and Ho Chi Minh City, the proportion of trained workers exceeded the national average significantly, standing at 44.2% and 38.1% respectively These urban centers also boasted a notable concentration of workers with university degrees or higher, comprising 24.6% and 23.6% respectively
By 2021, the total number of trained workers nationwide increased to around 12.8 million, representing 26.1% of the workforce The pattern observed in 2020 persisted, with the Mekong Delta region recording the lowest proportion of trained workers (14.7%), while the Red River Delta maintained the highest (36.8%) Moreover, Hanoi and Ho Chi Minh City continued to exhibit significantly higher proportions of trained laborers compared to the national average, reaching 50.2% and 36.0% respectively These urban areas also retained a substantial concentration of workers holding university degrees or higher, accounting for 20.0% and 16.2% respectively
In 2022, the nationwide count of trained employed individuals saw a slight increase to 13.3 million, equivalent to 26.3% of the workforce, with the highest proportion being those holding degrees and above (11.7%) The rate of trained workers remained lowest in the
10
Trang 12Mekong Delta (14.5%) and highest in the Red River Delta (36.9%) Although there was a modest decrease compared to 2021, Hanoi and Ho Chi Minh City still maintained relatively high proportions of trained workers, standing at 50.0% and 35.8% respectively Additionally, the proportion of workers with university degrees or higher was 19.7% for Hanoi and 15.9% for HCMC
4 Structure of employed population classified by occupational groups
4.1 From 2015 to 2019:
Lao động tir 15 tudi tro lén dang lam viéc hang nam phân theo nghề nghiệp 2015 - 2019 (Đơn vị hàng nghìn)
Figure 3.8: Structure of employed population classified by occupation groups
Source: https://vcci-hcm.org.vn/ and tông cục thống kê
While the overall labor structure across different occupations appears relatively stable across the period (2015-2019), a closer look reveals two key trends Firstly, “skilled agricultural, forestry, and fishery workers” experienced a significant decline The number of workers in this sector dropped from 5.3 million in 2015 to 4 million in 2019, with a notable decrease concentrated in 2017 and 2018 The data reveals a significant shift in Vietnam's workforce structure between 2015 and 2019 Notably, occupations demanding "Professionals" and "Craft and related workers" saw a surge of over 20% compared to 2015 "Plant, machine
operator and assemblers" witnessed an even more dramatic increase, with a growth of 43%,
jumping from 4.6 million to 6.6 million workers In contrast, occupations requiring
"Elementary occupations" declined by 10%, highlighting a move away from low-skilled labor Similarly, "Leaders" and "Others" categories experienced a decrease of around 8-9%,
However, "Technicians and associate professionals", "Clerk" and "Service workers and
market sales workers" all experienced growth, ranging from 8% to 10%
=> This trend signifies a two-fold transformation in Vietnam's occupational landscape Firstly, the workforce is transitioning from simple labor towards roles demanding specialized technical skills Secondly, there's a clear shift away from traditional sectors like agriculture towards a focus on industry, construction, and services This rapid structural change is likely driven by government policies prioritizing industrial development and tourism service expansion
4.2, From 2020 to 2022:
Table 3.9: Structure of employed population classified by occupational groups
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Trang 13
Occupations hou Total | % (thew Total | % (Tho Total| %
ons: (%) | Female ous: (%) | Female ous: (%) | Female
TOTAL 53,609.6 | 100.0 | 47.2 | 49,072.0| 100.0 | 46.5 | 50,604.7| 100.0| 46.8 Leaders/ 554.2 1.0 266 | 4785 | 10 | 249 | 4770 | 09 | 261
managers
High-level professionals 42859 | 80 | 546 | 35957] 73 | 561 | 3.6360] 72 | 56.5 Mid-level professionals 17326 | 32 | 562 | 16347] 33 | 568 | 16578] 33 | 558 Clerks 10163} 19 | 467 | 1,126.7] 23 | 512 | 12273] 24 | 51.7
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Trang 14
related trade workers" (nearly 7.4 million people, representing 13.7%); and "plant and machine operators and assemblers" (7.1 million people, making up 13.2%) Conversely,
"high-level and mid-level professionals" comprised a relatively small percentage of the overall workforce (8.0% and 3.2% respectively) While women occupied a higher proportion than men in four out of nine occupational groups, only 26.6% of "leaders" were women The occupations with more female workers than male were "personal services, protective workers,
and sales workers," "high-level professionals," "middle-level professionals," and "unskilled
occupations."
By 2021, the group of "unskilled workers" decreased significantly to 25.7%, equivalent to nearly 12.6 million people Other occupational groups continued to hold substantial proportions, including "personal services, protective workers, and sales workers" (9.3 million people, or 19.0%); "craft and related trade workers" (nearly 7.1 million people, equivalent to 14.5%); and "plant and machine operators and assemblers" (6.9 million people, accounting for 14.1%) Conversely, the proportion of workers with high-level and mid-level technical qualifications remained small (just over 10%) Furthermore, the percentage of female
"leaders/managers" declined to 24.9%, and the occupations with more women than men remained consistent with the previous year
In 2022, “unskilled occupations" continued to decline to 24.8%, approximately 12.5 million people Other occupational groups maintained significant proportions, including
"personal services, protective workers, and sales workers" (9.7 million people, or 19.3%);
"craft and related trade workers" (more than 7.3 million people, equivalent to 14.6%); and
"plant and machine operators and assemblers" (7.6 million people, representing 15.0%) Despite an increase over the years, "high-level and mid-level professionals" still accounted for
a modest percentage of the total workforce (only over 10.5%) Four out of nine occupational groups saw greater participation from women than men, especially in the "service and sales workers" group Additionally, the proportion of female workers in the "leaders/managers" group increased compared to previous years, albeit still lower than that of men Nevertheless, this trend indicates positive strides toward gender equality in the workplace
5 Structure of employed population classified by economic sectors
5.1 From 2015 to 2019:
Trang 15Figure 3.10: Structure of employed population classified by industrial groups (%)
Source: (Ong cuc thong ké
- 26,7 0,0 22,8
15,0
0
2015 2016 2017 2018 2019
Nông, lâm nghiệp và thuỷsản ===Công nghiệp và xây dựng —=#&—=Dich vụ
Vietnam's workforce composition reflects a shift towards an industrialized and modernized economy In 2015, the proportion of labor in the “Agriculture, forestry and fisheries” sector accounted for 44.4%, nearly half the proportion of the industry and construction sectors; combined services But following the trend of shifting to an industrialized and modernized country, in the following years, the “Agriculture, forestry and fisheries” sector decreased to 40% in 2017 and to 34.7% in 2019 In contrast, the "Industry and construction" sector; the “Services” sector tend to increase in number of employees from 32.8% to 35.9%, an increase of more than 3%, and the proportion in “industry and construction” increased by more than 6% for 5 consecutive years This data suggests a growing focus on industrial development alongside the service sector as Vietnam's economy evolves
Figure 3.11 and 3.12; Distribution of employed population by industrial sector and
socioeconomic region in 2015 and 2019 Source: gso.gov.vn
~ xe % % ' % Figure 2.1: Distribution of employed population by industrial sector and socio-
Figure 2.1: Distribution of employed population by industrial sector a jon of employed pop pny —
Northem Red River North and Central Southeast Mekong HaNoi Ho Chi
Midlands Delta South Highlands River Minh city
and Central Delta
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the service sector This data suggests a significant disparity between urban and rural areas, with Ho Chi Minh City leading the way in industrial and service-based employment
In 2019, in mountainous and coastal areas, agriculture remains the dominant sector,
employing a significant portion of the workforce The Central Highlands lead with 70.2% of workers in agriculture, followed by the Northern Midlands and Mountains (56.6%) and the Mekong River Delta (40.8%) Interestingly, the data suggests a more developed economic structure in Ho Chi Minh City compared to Hanoi While most workers in Hanoi are likely employed in industry and services (percentage not given), a staggering 98.6% of Ho Chi Minh City's workforce is concentrated in these sectors
5.2 From 2020 to 2022:
Total (Thous pers) Structure (%)
Economic sectors
2020 2021 2022 | 2020 | 2021 | 2022 Agriculture, forestry, | 17945 | 142623 | 139376 | 331 | 291 | 27.5 and fishing
Industry and 16,508.7 | 162498 | 169269 | 308 | 33.1 | 33.5
manufacturing
Services 19,336.3 | 18,559.9 | 19,7402 | 362 | 37.8 | 390 TOTAL 53,609.6 | 49,072.0 | 50,604.7 | 100.0 | 100.0 | 100.0
Table 3.13: Structure of employed population classified by economic sectors from 2020 to 2022
One of Vietnam’s government's major policies is economic restructuring towards industrialization and modernization, inevitably altering the labor distribution across economic
sectors
In 2020, the proportion of workers in the “Agriculture, forestry, and fishing” sector decreased to 33.1%, a 1.4% decline compared to 2019 Meanwhile, the “Industry and manufacturing” and “Services” sectors increased to 30.8% and 36.2% respectively, both rising by 0.7% from 2019 Consequently, there was a shift in the labor structure from the
“Agriculture, forestry, and fishing” sector to the “Industry and manufacturing” sector and the
“Services” sector compared to 2019
In 2021, the General Department of Statistics introduced a new employment concept, excluding self-productive and self-consumed workers from the “Agriculture, forestry, and fishing” sector This reduced the percentage of labor in this sector below that of the “Industry and construction” sector (29.1% compared to 33.1%) The trend of decreasing labor in the
“Agriculture, forestry, and fishing” sector continued, declining by 4%, while the “Industry and construction” and “Services” sectors saw increases of 2.3% and 1.7% respectively
compared to 2020 However, all three economic sectors witnessed a decline in the number of
workers due to the Covid-19 pandemic
In 2022, the number of workers in the “Industry and Construction” sector rose to 16.9 million (33.5%), an increase of 677.1 thousand compared to the previous year The “Services”
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Trang 17sector saw a significant rise, reaching 19.7 million (39.0%), nearly 1.2 million more than the previous year Conversely, the number of workers in the “Agriculture, forestry, and fishing” sector decreased to 13.9 million (27.5%), 324.7 thousand lower than the previous year Similar to 2020, 2022 continued to observe a shift in industry structure from the “Agriculture, forestry, and fishing” sector to the “Industry and manufacturing” and “Services” sectors However, in 2021, due to the impact of the Covid-19 pandemic, the labor structure witnessed
a reverse shift Excluding the impact of the new employment concept introduced by the General Statistics Office, the proportion of labor in the “Agriculture, forestry, and fishing” sector increased while sharply decreasing in the “Services” sector With the economy's recovery in 2022, the “Service” sector also saw rapid recovery, leading to a return to the pre- Covid-19 pandemic industry structure trend
6 Structure of employed population classified by employment status
6.2 From 2020 to 2022:
Trang 18
Table 3.15: Structure of employed population classified by employment status from 2020 to 2022
In 2020, the "wage worker" group comprised the largest proportion, accounting for 48.4%
of the total workforce This trend highlighted the transitioning nature of Vietnam's labor market while underscoring the existing disparity in job quality compared to more developed nations In the category of “unpaid family workers," females continued to dominate, representing 67.9% These individuals, lacking stable employment and access to social insurance, faced significant disadvantages
In 2021, despite a decrease of 487.1 thousand individuals (a 1.9% decline) compared to the previous year, the "wage worker" group still constituted the majority, making up 51.9% of the workforce Other categories such as "employers," "own account workers," and "members
of cooperatives" all experienced increases, albeit marginal, due to the impact of the Covid-19 pandemic Conversely, the "unpaid family worker" group saw a 5.6% increase from 2020, as many individuals lost their jobs during the pandemic and resorted to temporary work within family units for survival Gender disparities were evident, with female workers occupying a smaller proportion in the "wage worker" or "employer" categories compared to males, while comprising the largest share in the disadvantaged "unpaid family worker" group (65.4%), highlighting gender inequality
In 2022, the "wage worker" group remained dominant, accounting for 53.8% of the workforce, with an increase of nearly 1.8 million individuals (a 6.9% rise) compared to the previous year Conversely, the "unpaid family worker" group decreased by 255.6 thousand individuals (a 4.5% decline) from the previous year, indicating a reversal from the 2021 trend and signaling a relatively swift labor market recovery after the severe impacts of the Covid-19
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pandemic In terms of gender, women constituted 66.4% of the disadvantaged "unpaid family worker" group, significantly higher than men Conversely, male workers dominated the "wage worker" and "employer" categories, comprising 56.1% and 74.0% respectively, revealing gender disparities in employment However, there was a slight reduction in the gender gap within the "wage worker" group, decreasing from 13.6% in 2020 to 12.2% in 2022, indicating
a positive shift towards gender equality
Il Employment Conditions and Job Quality
Employment conditions and job quality are one of the major factors when it comes to a
labor force evaluation In this section, we will focus on 4 main key factors: income, work
hours, contract and insurance and labor conditions
I Income
Within the period 2015 to 2022, Vietnam is still considered a low-middle income country Even though wages rise throughout the years, people’s income is still considerably low, or is insufficient for workers’ daily needs The COVID-19 pandemic severely tanked the economy,
as well as the people’s income
Average monthly wages divided by professional qualifications 2015-2019
(by thousand VND) Professional qualifications 2015 2016 2017 2018 2019
Industrial school graduates 5 385 5 834 6257 6667 7703
High school graduates 4761 5150 5526 5847 7014
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It can be seen that within this timeframe, wages of all workers, regardless of their
qualifications rose steadily without any signs of downward trend University graduates and above had the highest income out of all sectors Throughout a 4 year timeframe, wages rose
by around 30%, and for some factors, wages rose dramatically by around 45% University graduates and above income is 1,7 higher than those untrained
These figures are in line with the economic growth during that time period as the economy as a whole was very healthy The economy not only achieves high growth rates, but the economic structure also continues to shift towards industrialization and modernization During the implementation process, Vietnam had gradually innovated the economic model, accelerated its growth, manifested in the average GDP growth rate in the period 2016-2019 reaching 6.73% (higher than the average annual growth rate of 5.91% in the period 2011- 2015) Moreover, inflation was effectively controlled, imports and exports were on the rise and many other positive economic results were yielded Because of that, the wages of workers also saw a positive trend
1.2, From 2020-2022
This time frame 1s also the time frame in which the pandemic begins COVID-19 severely negatively affected many aspects of worker’s daily lives, including income The wages’ steady rise quickly came to a halt and quickly dropped
Average monthly wages divided by professional qualifications
(by thousand VND) Professional qualifications 2019 2020 2021 2022