The period of profound fluctuations
According to the report on the status and trends of the implementation of unemployment insurance policies in conjunction with job creation issued by the Hanoi Employment Service Center, the period 2021-2024 has witnessed profound and unprecedented changes in the capital's labor market. The unemployment insurance (UI) system at this stage is also the most obvious example of those changes.
In 2021, in the context of the prolonged impact of the COVID-19 pandemic, the number of people with decisions to receive unemployment benefits (TCTN) was 63,636. However, in 2022, despite the strong recovery of the economy, this number has increased slightly to 71,714 people, showing that despite the economic recovery, the process of restructuring and screening labor in enterprises continues, pushing some laborers out of the market.
The peak of the crisis period came in 2023, when the number of people with decision to receive TCTN in Hanoi skyrocketed to a record of 84,984 people. This fluctuating increase is an important macroeconomic indicator, showing the profound impact of difficulties from the global economy and the current situation on the business sector.
A survey by the Hanoi Employment Service Center shows that many labor-intensive industries such as garment, footwear, wood processing and electronic components manufacturing have had to face a serious decline in orders, namely reducing production scale and mass cuts to labor. The number of nearly 85,000 people receiving TCTN in a year has put a huge pressure on the social security system, while affirming the indispensable role of the unemployment insurance policy as a final "safe net", helping to stabilize the lives of tens of thousands of families and prevent the risk of social instability.
In 2024, along with the positive recovery of the economy, the number of TCTN beneficiaries has tended to decrease to 73,245 people, showing that the labor market has begun to enter a more stable period.
Weak groups in the labor structure receive unemployment insurance
The Hanoi Employment Service Center stated that one of the most prominent and consistent features in the unemployment insurance- enjoying labor structure is gender gap, with female workers always accounting for a large proportion, fluctuating around 58% of the total number of people receiving unemployment benefits during the entire period. This situation clearly reflects the phenomenon of "the sex market segment of labor market", when female workers tend to be highly concentrated in labor-intensive industries, there is a chance of expanding labor demand due to extracurricular shocks. Therefore, when the economy is facing difficulties, they become the most directly and heavily affected subjects.
The trend of age-related restructuring shows the beliefs to note. The young labor group (under 24 years old) shows a very high vulnerability rate, with the number of people receiving TCTN skyrocketing during the difficult period, especially in 2023. This clearly reflects the "back and forth" rule, when businesses tend to cut out young, less experienced employees at first. This is a warning bell about challenges in the transition from schools to the labor market for young people.
Meanwhile, the older labor force (over 40 years old) has shown a steady and persistent increase in the number of unemployed people over the years, even in 2024 when the market has recovered. This shows that their unemployment is not only cyclical according to economic fluctuations, but also structural, reflecting challenges from elimination due to changing technology and age prejudices. This group of workers, when they have lost their jobs, often face more difficulties in recentralizing the market, facing a higher risk of long-term unemployment.
