Unemployment rates among young workers and adults tend to increase

Mr. Hoang Linh (25 years old, Hoang Mai, Hanoi) has just had his contract terminated by a pharmaceutical company since June 1st after 6 months of working. The reason the company downsized is because the authorities have increased inspections of fake milk, fake medicine, and fake cosmetics.

Ms. Thu Hanh (27 years old, Ha Dong, Hanoi) also terminated her contract with a textile company after more than 1 month because she could not stand the work schedule and wanted to change to a more flexible environment.

According to the Hanoi Employment Service Center, the unemployment rate is high among workers aged 25-34. In April, this group accounted for 44.6%, up from 42.8% in March and has continued to increase since the beginning of the year.

The main reasons given by the center are that the employee's contract expires or both parties agree to terminate; or the employee unilaterally terminates the contract. In addition, the business downsizing, dissolving, and the employee being disciplined or fired also contribute. Other reasons such as conversion and personal reasons, although slightly reduced, are still high, showing fluctuations and diversity in reasons for leaving work.

The number of people who decided to receive unemployment benefits increased significantly in April, reflecting the difficulty in finding and maintaining jobs. The Hanoi Employment Service Center received 7,297 applications for unemployment insurance in April, an increase of 2,300 compared to March and an increase of 816 compared to the same period in 2024.

Employers say that most young workers lack experience and practical work skills. They have to compete with long-term workers who have experience and honed skills. Businesses increasingly require higher degrees and certificates, creating barriers for young workers to find jobs.

In addition, automation and digital transformation can eliminate a portion of the workforce that does not have the appropriate qualifications and skills.