job loss makes it increasingly difficult for workers to return to the job market
Mr. Cam Van Duc (born in 1997, from Tan Son commune, Phu Tho province) has been working as a worker in Hanoi since 2016.
In 2019, Mr. Duc lost his job while working as a worker in Thu Lam commune (Hanoi). At that time, after receiving unemployment benefits for 4 months, Mr. Duc found a new job in Ngoc Hoi commune (Hanoi).
In December 2024, Mr. Duc continued to lose his job because the company where he worked had sharply cut staff, especially among workers without degrees.
"Since then, I have not found a new job and am still receiving unemployment benefits. The monthly allowance is more than 4 million VND, I only leave 1 million VND to fill up gas and drink water, the rest is sent to my sister-in-law to cover additional food expenses because I am staying at my brother and sister-in-law's house.
I have never found it so difficult to find a job like this. Not only does the job require qualifications, but even pho thong, manual labor is also fiercely competitive. For example, I apply for the job of restaurant security guard, in addition to health requirements, the employer also prioritizes candidates with a driver's license and know how to drive a car to bring the car to the parking lot or send it to customers, and some places even prioritize knowing the minimum foreign language...", Mr. Duc said.
To stay in Hanoi, along with traveling to get a job, Mr. Duc took the opportunity to ship goods to his brother and his sister-in-law took on the additional work of urgently issuing paper gifts to agents.
"At the end of this year, I can't find a job, the allowance is gone, I will return to my hometown," Mr. Duc said sadly.
Ms. Luu Thi Minh is also a worker who faces many difficulties when returning to the job market after losing her job.
Ms. Minh said that she used to work as an accountant in Ha Dong ward and lost her job in June 2024. Receiving a 7-month unemployment benefit, in early 2025, Ms. Minh decided to return to her hometown in Hung Yen to work as a worker at a plastic foundation company near her home.
"I sent dozens of CVs and attended dozens of job fairs, but all doors seemed closed. Employers require more depth and higher in the accounting position, not simply the job I took on at my old company. There are some places that accept me but the salary is too low, balancing the cost of renting a house and living, I found it really difficult, so I decided to return to my hometown to stabilize my life soon," Ms. Minh shared.
Increasing the number of workers with extended unemployment
The figures in the Report on the Current situation and trends of implementing unemployment insurance policies associated with job creation issued by the Hanoi Employment Service Center show that the group of workers with extended unemployment periods has increased significantly in the past 4 years.
The Hanoi Employment Service Center said that the total unemployment benefit payment (TCTN) has increased sharply from VND 1,593 billion in 2021 to VND 2,383 billion in 2023. The average TCTN benefit is about 4.5 - 4.6 million VND/person/month.
In the payment structure according to the benefit period, in terms of the proportion of beneficiaries in 2021, the group receiving TCTN for 3 months accounted for 46.3%, in 2024 it decreased to 42.5%. Funding proportion: In 2021, the group receiving 7-12 month TCTN accounts for 57.7%, in 2024 it will be up to 65%. According to the Hanoi Employment Service Center, this shows that workers are spending more time looking for new jobs, reflecting a less-achieving and more competitive labor market.
Research on the payment structure according to the benefit period shows a certain confidence in imbalance, when the biggest financial burden of the Unemployment Insurance Fund comes from the group of long-term unemployed workers. During the period of 2021-2024, the group receiving TCTN for 7-12 months, although only accounting for about 1/3 of the number of people, consumed over 60% of the total payment cost. This proportion also tends to increase gradually, from 57.7% in 2021 to 65.0% in 2024. This situation shows that the biggest challenge of the policy is not only to solve temporary allowances, but also how to shorten unemployment time, especially for the group of long-term unemployed workers.
Financial resources are being used mainly to maintain a state of prolonged subsidies instead of being effectively invested in to completely solve the unemployment problem, helping workers find sustainable jobs. This is one of the biggest bottlenecks, requiring strong reforms in the implementation of policies to support the policy, especially training and improving vocational skills, said Mr. Vu Quang Thanh - Deputy Director of the Hanoi Employment Service Center.
