Reporting before the question-and-answer session at the 5th meeting, Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung said that the number of employees in enterprises affected in the first half of 2023 was nearly 510,000 people.

The number of people who quit or lost their jobs was 280,000; the largest number was in the textile and garment industry, followed by leather and footwear (31,600 people), and electronic components and products manufacturing (45,000 people). The places with the most job losses were industrial parks and large economic zones such as Binh Duong, Dong Nai, Ho Chi Minh City, Bac Giang, Bac Ninh, Hai Duong and Hanoi.

Textile and garment is also the sector with the most reduced working hours, followed by leather and footwear (66,000), electronic components and products manufacturing (24,800 people), seafood processing (nearly 6,000), and wood processing (5,400).

The number of workers suspended or on unpaid leave is 17,000, and the textile industry still leads with nearly 5,000.

More than 8,600 enterprises had to cut their workforce, of which 27% were FDI enterprises; 72% were non-state enterprises. The most affected region was the Southeast region, accounting for nearly 2/3; 12% of enterprises were in the Red River Delta. According to statistics, untrained workers who were laid off or lost their jobs accounted for the largest proportion, 68%.

According to Minister Dao Ngoc Dung, the massive cuts occurred due to the lack of orders from businesses, economic difficulties in countries, high inflation, and tight monetary policies, leading to a decline in purchasing power, especially the demand for fashion items such as clothes, shoes, and personal electronic devices. Many businesses have a lot of inventory that cannot be exported, while there are no new orders.

The Ministry of Labor, War Invalids and Social Affairs has implemented many policies to support the bereaved and those who have reduced working hours, such as free job consultation and referral; vocational training support, preferential credit, maintaining and expanding employment from the National Employment Fund; and a policy to temporarily suspend contributions to the pension and death benefit fund.

In the coming time, the Ministry will complete the system of policies and laws to synchronously develop labor market factors; promote sustainable job creation and effective labor use through credit policies to support job creation and labor market participation.

The Ministry also assigned agencies to step up forecasting of labor demand and vocational training of enterprises; attract investment, support enterprises to recover and develop production and business, access markets, seek new orders, and reduce production costs.

Amendments to unemployment insurance policy

According to the report of Vietnam Social Security (VSS), in 2022, the number of people receiving one-time social insurance benefits was 997,470 people (an increase of more than 3% compared to 2021). In the period 2016-2022, social insurance agencies in provinces and cities have received one-time social insurance benefits for about 4.84 million people, of which 1.24 million people returned to pay social insurance.

Labor leaders believe that most workers do not have the ability to save, so when they lose their jobs, they face huge immediate financial needs. Most young workers are more concerned with immediate needs than the need to receive a pension when they retire.

In addition, the production and business situation of enterprises is facing difficulties, many enterprises have stopped operating. The situation of underemployment, joblessness, and job loss has increased the number of people receiving one-time social insurance. Unemployment insurance policies lack connection and support.

Minister Dao Ngoc Dung said the Ministry will study and amend unemployment insurance policies and promote the effectiveness of loan support policies from the Bank for Social Policies. Authorities will also disseminate laws to raise awareness of the meaning and importance of accumulating contributions for retirement benefits; and strengthen people's trust in the social insurance system.

The question-and-answer session at the 5th meeting began on the morning of June 6, lasting 2.5 days with four groups of issues. The first group of issues was answered by Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung. The content included solutions to develop high-quality human resources to meet the development requirements of the industry and sector; planning and restructuring of training quality of vocational training institutions; the current employment situation and solutions to remove obstacles in job creation for workers.

Minister Dung also informed about solutions to overcome limitations in the field of social insurance (enterprises evading payment, appropriation, and debt of social insurance premiums, collusion, false establishment, and falsification of insurance benefit records, and incorrect payment of benefits); the management of the Social Insurance Fund; and solutions to overcome the increasing trend of employees withdrawing social insurance benefits at one time.

Deputy Prime Minister Tran Hong Ha, Ministers of Finance, Planning and Investment, Education and Training, and Home Affairs participated in answering questions.

Son Ha