Exciting Labor Market after Tet Holidays

The labor market in Vietnam is expected to have positive movements in the first quarter of 2023 with many industries having high recruitment demands right after the Lunar New Year.

The Hanoi Employment Service Center said that with the positive recovery of the capital's economy in 2022 and early 2023, the labor market situation is expected to have positive movements in the first quarter of 2023.

Therefore, the recruitment demand of enterprises will continue to increase. According to the aggregated data of the Hanoi Employment Service Center, a number of industry groups have great demand for recruitment, such as the transport-logistics; hotel and restaurant services, tourism; real estate business; financial and banking services; and information technology. Total recruitment demand in the first quarter is expected to be about 100,000 - 120,000 jobs.

In particular, in the transport-logistics business sector, the recruitment demand in the first quarter of 2023 is expected to be about 14,000 - 18,000 jobs. Enterprises operating in real estate business have an estimated recruitment demand of 10,000-15,000 positions.

Banking and finance are also industries with great recruitment demand, estimated at 15,000-20,000 positions, mainly focusing on positions such as transaction staff, corporate customer relations officer, and property appraiser.

Information technology always has stable recruitment demands, and is forecast to continue to have a high growth rate in 2023. In the first quarter, as observed by the Hanoi Employment Service Center, businesses are in need of 12,000 to 15,000 positions, focusing on positions that require high expertise such as IT developers, software developers, UI/UX, DA, BA, mobile application programming, and game programming.

Meanwhile, according to the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs, right after Tet, nearly 500 businesses need to recruit more than 14,300 workers, mainly in the fields of apparel, footwear, electronics, and plastics. The Center for Forecasting Human Needs and Labor Market Information in Ho Chi Minh City also forecast that in the first quarter of this year, the city needs about 79,000 - 87,000 workers. Nearly 70% of recruitment demand is concentrated in the trade-service sector, while the industry-construction accounts for 30%.

Previously, the Salary Survey Report 2023 published by Navigos Group also partly reinforced the view that information technology is an industry that always has good recruitment demand, especially after the COVID-19 pandemic. Information technology has undergone many changes. Notably, businesses with large customer data such as banks, telecommunications and retail have recruited more experienced personnel in this field.

Thanks to the promulgation of many policies and programs to stimulate tourism demand, promoting recovery and strong growth, accommodation, food, hotel and tourism services also promise to be the industry that has an explosive recruitment demand in the first quarter and the next period. The estimated recruitment demand of this group is about 10,000-12,000 positions.

According to a report by the Ministry of Labor, Invalids and Social Affairs, the labor market has gained recovery momentum, and the recruitment demand of enterprises continued to increase in the early days of spring 2023.

However, in the first and second quarters, many businesses will face difficulties due to the impact of the world market, so there is a local labor shortage in the South and Central regions.

To promote job creation, the ministry will strengthen the application of information technology, digital transformation, and digitalization to connect labor supply and demand. In particular, the ministry will review and assess human resource needs by industry and field; organize training and develop skills, and promptly meet the labor market, especially the needs of foreign-invested enterprises.

Expert Le Duy Binh, Director of Economica Vietnam, said that it is necessary to accept the reality of the market in order to have radical solutions, not just by supporting solutions.

The radical measure is the preparation, training and re-training of employees; providing adequate information, recruitment and transfer opportunities for them, especially for the group of workers over 35 years old. Accordingly, the Government and localities can consider promoting specific programs to specifically support training, connection and counseling for employees.

"If they have better vocational training, when they meet a shock, at least they still have a chance to change jobs. Training is not only about skills, but they are also prepared for soft skills, adaptability, looking for a job," Binh said.

Besides, he also emphasized that it is necessary to maintain good social security because this is a buffer zone for workers.

Source: Vietnam Business Forum