Industry faces worker shortage despite high unemployment

13 Jan '10

2 min read

The southern province of Dong Nai is experiencing dearth of workers, particularly in footwear and textile-garment industry even though the region has a high unemployment ratio. This year, a number of industrial zones and companies in the province will require 60,000 to 70,000 workers, as per the provincial Department of Labour, Invalid and Social Affairs.

As salaries paid by footwear and textile sectors is too low, despite the hard and hazardous nature of the work, these industries are facing shortage of workers in spite of the large number of jobless people. Due to this, the companies now are employing migrant workers under the age of 40. Around 230,000 migrant workers are working in the province.

However, hiring a large number of migrant workers creates several other problems for the companies as they need accommodation and other infrastructure. Currently, the province has to spend VND4 billion (US$220,000) per year on electricity and water, required to be provided to the migrant workers.

The province will have to create around 85,000 jobs this year, in order to cut down the unemployment ratio from 2.7 to 2.6 per cent in urban areas. Also, it will need to bring in technology-based industries, which requires less number of unskilled workers, said Mr. Lam Duy Tin, Deputy Director of the department.

In a bid to increase the number of jobs, the province will promote economic growth, develop job centres, amplify the effectiveness of capital use, and develop the labour market along with imparting vocational training to workers seeking to work in foreign countries. Apart from this, most significantly, the province requires to curb mass sacking in factories due to the global economic downturn, emphasized Mr. Tin.

Fibre2fashion News Desk - India

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