Unemployment rates among young and adult workers tend to rise.
The Hanoi labor market is witnessing a notable trend: the unemployment rate among both young and adult workers is on the rise.
Hoang Linh (25 years old, Hoang Mai, Hanoi) had his contract terminated by a pharmaceutical company effective June 1st after 6 months of employment. The reason given was downsizing due to increased inspections by authorities regarding counterfeit milk, counterfeit medicine, and counterfeit cosmetics.
Ms. Thu Hanh (27 years old, Ha Dong, Hanoi) also terminated her contract with a textile company after more than a month because she couldn't stand the work pace and wanted a more flexible environment.
According to the Hanoi Employment Service Center, the unemployment rate among workers aged 25-34 is high. In April, this group accounted for 44.6%, an increase from 42.8% in March, and has continued to rise since the beginning of the year.
The main reasons cited by the center are the expiration of employment contracts or mutual termination; or unilateral termination of contracts by employees. In addition, downsizing, dissolution of businesses, disciplinary action, and dismissals also contribute. Other reasons such as job changes and personal reasons, while less significant, remain at a high level, indicating the variability and diversity of reasons for leaving employment.
The number of people applying for unemployment benefits increased significantly in April, reflecting difficulties in finding and maintaining employment. The Hanoi Employment Service Center received 7,297 applications for unemployment insurance benefits in April, an increase of 2,300 compared to March and an increase of 816 compared to the same period in 2024.
Employers believe that the majority of young workers lack experience and practical work skills. They have to compete with long-term workers who have honed their skills and experience. Businesses are increasingly demanding higher qualifications and certifications, creating barriers for young workers to find jobs.
Furthermore, automation and digital transformation may eliminate a segment of the workforce that lacks the appropriate qualifications and skills.
