Vietnam's employment rises in Q4 2023 amid economic recovery

02 Jan '24

2 min read

Pic: Adobe Stock

Insights

In Q4 2023, Vietnam's workforce reached 51.5 million, a significant increase from the previous year, driven by Tet holiday activities.
Despite growth, labour quality concerns persist with many in informal sectors.
The average monthly income rose to VND7.1 million, but gender and regional wage gaps exist.
Unemployment stands at 2.03 per cent.

Vietnam has witnessed a significant increase in its employed workforce in the fourth quarter (Q4) of 2023, with the total number reaching 51.5 million, as per the General Statistics Office of Vietnam (GSO). This marks an addition of 130,400 workers compared to the previous quarter and 414,600 more than the same period last year. The rise in employment is primarily linked to heightened production and business activities surrounding the Tet (Lunar New Year) holiday.

Despite the encouraging growth in employment numbers, concerns about the quality of the labour market remain, with a notable portion of the workforce engaged in informal sectors, according to GSO's report on Vietnam's 2023 socio-economic situation.

The country's labour force, which includes individuals aged 15 and above, stands at 52.4 million, with 51.3 million currently employed. This is a 1.35 per cent increase from the previous year.

Financially, the average monthly income in Vietnam in 2023 has been VND7.1 million ($293), showing a 6.9 per cent increase from last year. However, disparities exist in earnings across different genders and regions. Men, on average, earn VND8.1 million ($334) per month, while women earn VND6 million ($247). Similarly, the wage gap is evident between urban (VND8.7 million or $359) and rural workers (VND6.2 million or $256).

On a per capita basis, the average monthly income in 2023 is estimated at VND4.95 million ($204), a 5.9 per cent increase from the previous year.

Regarding unemployment, Vietnam's Q4 data shows 1.06 million people in the working age are unemployed, making up 2.03 per cent of the labour force. Notably, the southeastern region, including Ho Chi Minh (HCM) City, Vietnam's largest economic hub, has seen a decrease in unemployment rates. HCM City's unemployment stands at 2.91 per cent, a significant drop from the previous quarter.

Additionally, the number of workers facing temporary redundancy has declined in Q4, now at about 77,800 individuals, predominantly in foreign-invested, footwear, and textile companies, according to Vietnamese media reports.

However, job loss remains a concern, with approximately 85,500 people losing their jobs in Q4 of 2023. The majority of these job losses occurred in the non-public sector and in HCM City.

Fibre2Fashion News Desk (DP)

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