In the first half of 2024, the Vietnam labor market trends 2024 reveal several significant changes and developments. According to the latest report from the General Statistics Office, the labor force participation rate has reached 68.5%. This figure, while slightly down by 0.4% from the previous year, indicates a stable labor supply amidst evolving economic conditions.
Key Trends in Vietnam’s Labor Market for 2024
- Growth in Labor Force and Employment The Vietnam labor market trends 2024 highlight an encouraging increase in both the number of employed individuals and the overall labor force. With 51.4 million people employed in the first half of 2024, there is a notable rise, especially in the urban sector, which saw a growth of 687,900 people. This shift aligns with ongoing urbanization and industrialization trends, moving the labor force increasingly towards metropolitan areas.
- Rising Proportion of Skilled Workers A significant trend in the Vietnam labor market trends 2024 is the rise in the percentage of skilled workers. The proportion of workers with degrees and certifications has climbed to 28%, a 1.4% increase from the previous year. This indicates ongoing efforts to enhance the quality of the labour force, catering to the needs of modern industries and improving workforce qualifications.
- Underemployment and Regional Disparities Despite overall positive indicators, the Vietnam labor market trends 2024 also reveal challenges related to underemployment and regional disparities. The underemployment rate among the working-age population has increased slightly to 2.05%, with rural areas experiencing a rise to 2.49%. Urban areas have seen a decrease in underemployment to 1.37%. Addressing these regional imbalances remains crucial for balancing labor market conditions
- Unemployment Rate Stability The unemployment rate has remained relatively stable at 2.27%. However, the Vietnam labor market trends 2024 show that young people aged 15 to 24 are facing greater difficulties, with an 8% increase in unemployment within this group. This underscores the need for targeted interventions to better integrate younger individuals into the workforce.
- Income Growth and Regional Income Gaps Another positive aspect of the Vietnam labor market trends 2024 is the increase in average worker income. Monthly salaries have risen to 7.5 million VND, a 7.4% increase from the previous year. However, disparities persist, with average incomes in urban areas reaching 9.1 million VND compared to 6.5 million VND in rural areas. This highlights ongoing economic inequalities between urban and rural regions.
Conclusion
The Vietnam labor market trends 2024 present a mixed but generally positive picture of the country’s labor market. While there are encouraging signs of growth and improvement in workforce quality, challenges such as regional disparities, underemployment, and youth unemployment persist. Addressing these issues will be key to sustaining the positive momentum and achieving a more balanced and equitable labor market in Vietnam.