Labor market 'gradually returning to normal' as before the pandemic

51.3 million people will have jobs in the first quarter of 2024, a slight decrease compared to the fourth quarter of 2023 and gradually returning to the normal trend as before Covid-19, according to the General Statistics Office.

The General Statistics Office reported that the number of employed people decreased by 127,000 compared to the last three months of 2023 (about 0.25%), similar to before the pandemic. The pre-pandemic trend was that the number of employed people in the first quarter of the following year often decreased slightly compared to the fourth quarter of the previous year, but was higher than the same period. The decrease was often due to seasonal factors and festival culture after the Lunar New Year.

The proportion of workers employed in the service sector is the highest at 40%; followed by industry and construction at 33% and agriculture, forestry and fishery at 27%. The size of the service sector's workforce also increased the most with more than half a million people while the other two sectors decreased.

Shift time of May 10 workers in Hanoi, February 2024. Photo: Ngoc Thanh — Shift time of May 10 workers in Hanoi, February 2024. Photo: *Ngoc Thanh*

The average monthly income of workers in the first quarter of this year increased by more than VND300,000 compared to the fourth quarter of last year, reaching VND7.6 million. This level has improved but the growth rate is slow, about 7.8% while in the same period in 2023 it increased by 10%. Normally, the first quarter of the year records slightly higher income due to the bonus policy for the New Year and Lunar New Year.

The Mekong Delta recorded the highest average income growth rate of workers in the country in the first quarter, reaching 6.9 million VND (over 6%). Workers in Dong Thap province reached 8.2 million VND (28.5%); Bac Lieu 6.9 million VND (22.8%); Tien Giang 7.9 million (up 15%). On the contrary, the North Central and Central Coast regions had the lowest income growth rate, reaching 6.6 million VND (about 2.8%). Of which, Thanh Hoa had 6.8 million (up 1.8%), Nghe An 5.8 million VND (down 0.5%).

The average monthly income of workers in some industries has increased quite rapidly compared to the same period in 2023. Workers in the real estate sector have over 12 million VND (up 15.3%); finance, banking, insurance 13 million VND (up 12.7%); accommodation and catering services 7.3 million VND (up 9.3%); transportation and warehousing 10.5 million VND (9.2%).

The General Statistics Office cited forecasts from most international organizations that global economic growth this year will be lower than in 2023. The labor market and many sectors are gradually recovering, but businesses are still facing difficulties as the number of dissolutions and suspensions of operations is higher than the number of new establishments.

In the first quarter, the country had more than 36,200 newly established enterprises, with a total registered capital of VND 332,200 billion. The number of enterprises returning to operation also increased slightly by 2.4% compared to the same period in 2023, reaching more than 23,600 units. Thus, each month, nearly 20,000 enterprises were newly established and returned to operation.

Nearly 43% of businesses see stability, while the rest see difficulties due to low domestic market demand, high competition, and capital difficulties. However, orders are currently better than in the last three months of 2023, and the situation is expected to improve from the second quarter.

Hong Chieu

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