The Great Talent Hunt: Why Are Businesses Still Struggling to Find the Right Employees?

Difficulties in Recruiting Labor

Mr. Nguyen Van Binh from Bac Tu Liem attended the online job fair at the Hanoi Job Exchange to look for a job after three months of receiving unemployment benefits. Mr. Binh shared: “In the past time, I often looked for jobs online, but the process of exchanging and exploring information was limited, not to mention the high risk of fraud. When I learned that the Job Exchange organizes sessions connecting provinces, I came to explore and discuss directly with employers.”

Mr. Binh, who studied electrical engineering, applied for a job at the Mechanical Company in Long Bien District, Hanoi. After the resume interview round, he was accepted, and the company informed him that there would be a technical interview, which he needed to pass to get hired. If successful, Mr. Binh’s starting salary would be 8 million VND per month, excluding lunch allowance and transportation allowance. If he works overtime, his income could be higher. If offered a permanent contract, his basic salary could reach 13-15 million VND per month.

“Regarding experience, I believe I can meet their requirements. However, regarding new technology, I have to go there and test my skills to know how well I can perform,” shared Mr. Binh.

Ms. Duong Minh Anh, a human resources specialist at Aeon Vietnam Supermarket System, in charge of the Xuan Thuy Supermarket project (in Cau Giay District, Hanoi), said that the company has many business locations, and each has its own recruitment needs. Specifically, the upcoming Aeon Xuan Thuy Supermarket alone requires more than 400 employees. Depending on the position, the basic salary will vary. Blue-collar workers will receive 14 months’ salary per year and have the opportunity for annual salary adjustments. The average income ranges from 6 to 8 million VND per month, including social insurance contributions. From now until the end of 2024, the company will organize career days to attract workers, with a target of recruiting 400 to 500 employees.

“In addition to recruitment information from the job exchange, the company also posts job advertisements on its business fanpage, cooperates with colleges and universities for recruitment, or relies on referrals from existing employees,” said Ms. Duong Minh Anh.

Mr. Trinh Ngoc Tho, Deputy Director of Business at Viettel Hanoi Construction Branch, a subsidiary of Viettel Construction Joint Stock Corporation, shared that the company currently has recruitment needs for five different positions, including Business Director, Technician, and Sales Executive, with salaries ranging from 12 to 17 million VND per month and a total income of about 22-25 million VND per month. Due to the expansion of operations, from now until the end of the year, the company will need to recruit a large number of highly skilled workers through various channels, both online and offline.

Meanwhile, according to a survey by the Ha Tinh Province Job Service Center, since the beginning of 2024, the demand for labor in many manufacturing enterprises, especially in the garment industry, has been significant. In June 2024 alone, seven garment companies in Ha Tinh registered to recruit more than 3,600 blue-collar workers.

However, despite offering attractive salaries and benefits, many businesses face challenges in recruiting workers. The number of applicants is limited, leading to a decrease in the province’s employment situation in the second quarter of 2024 compared to the previous quarter. According to representatives of enterprises participating in the recruitment sessions, it is challenging to recruit workers, especially those with high technical skills, towards the end of the year.

Lack of High-Quality Labor

From the perspective of a labor recruitment agency, Mr. Vu Quang Thanh, Deputy Director of the Hanoi Job Service Center, shared that the labor market in the capital city is thriving. With the recovery of the economy and society, it is expected that the demand for recruitment will increase towards the end of the year.

In the second half of the year, businesses focus on stabilizing production and business activities, and entertainment and stimulation events are frequently organized, encouraging people to spend more. Increased consumption will be an essential factor in boosting the economy, especially in the fields of commerce, e-commerce, tourism, transportation, and accommodation, which will require a large number of workers.

In addition, key projects in construction and manufacturing always receive attention and are expedited in terms of progress and site clearance. This can lead to an increase in labor demand in the construction industry and the processing and manufacturing industries.

Mr. Nguyen Tay Nam, Deputy Director of the Hanoi Department of Labor, Invalids, and Social Affairs, assessed that Hanoi has a plentiful supply of human resources. Still, many industries and fields lack workers, especially in the manufacturing sector. One reason is that the number of graduates entering the job market at this time is not high. It is expected that the situation will improve in the third and fourth quarters of 2024 due to a better supply of labor.

Mr. Nguyen Tay Nam also noted that recently, the labor market has witnessed a struggle among enterprises to find workers. The reason for this difficulty is a shortage of labor. In addition, enterprises have changed their recruitment trends, prioritizing workers with expertise, qualifications, and professional skills, which are currently lacking in the Vietnamese market. Nowadays, with diverse career opportunities, blue-collar workers can choose to quit their factory jobs and venture into online sales or ride-hailing services as long as they have a decent income. Therefore, to attract workers, enterprises need to offer competitive salaries and attractive working conditions.

According to the General Statistics Office, by the end of June, the country’s labor force aged 15 and over reached 52.5 million. The proportion of trained workers with qualifications and certificates reached 28.1% by the end of the second quarter of 2024, indicating an improvement in labor quality. Notably, the number of workers in the informal sector, including those in agricultural, forestry, and aquatic households, still accounts for a large proportion, at 65.2%, of the total employed population.

To address these issues, the Ministry of Labor, Invalids, and Social Affairs will continue to strengthen the connection between labor supply and demand in the market, especially in key economic regions. The ministry will focus on creating jobs for youth, middle-aged people, and vulnerable workers and collaborate with the Policy Bank to implement preferential credit policies from the National Employment Fund to support youth in starting and developing their businesses.