The Future of Work: Navigating the Labor Market in the Fourth Industrial Revolution

The Fourth Industrial Revolution has ushered in a plethora of new industries and, with it, a surge in demand for highly skilled workers to facilitate this transition. Today's society no longer solely values academic qualifications but places a premium on vocational skills and competencies that meet the needs of these emerging industries.

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According to data from the online employment and recruitment platform “Good Jobs”, recruitment demand in the first eight months of 2024 on this platform increased by 30% compared to the same period in 2023. While demand is high, up to 85% of businesses surveyed reported a labor shortage. According to statistics from the Department of Employment (Ministry of Labor, Invalids, and Social Affairs), Vietnamese enterprises currently have more than 836,000 vacancies for unskilled labor. Meanwhile, there are over 1.06 million people of working age who are unemployed or underemployed.

ENTERPRISES ENGAGE IN TRAINING PROCESS

The online job fair connecting nine northern provinces and cities, organized by the Hanoi Center for Employment Service, revealed some changes in recruitment requirements. In previous years, businesses recruited a large number of unskilled laborers with no high requirements for qualifications or skills. Now, the bar has been raised, and at the job fair, almost 80% of the positions offered required a college or university degree, or technical workers with a secondary education.

Mr. Tran Ba Linh, General Director of High-Tech Joint Stock Company Dien Quang, shared that over the years, the company has prepared to lead the trend in the semiconductor industry. To achieve this, Dien Quang has invested in machinery, equipment, and modern production lines capable of producing high-difficulty electronic products and ready to accept outsourcing according to international quality standards. However, the biggest obstacle at the moment is the lack of human resources, both in quantity and quality.

Regarding recruitment criteria, Mr. Phan Quyet Long, Director of Thanh Long Co., Ltd., which specializes in industrial manufacturing and equipment supply (Hanoi), shared that the company’s selection of laborers is based on the basic capabilities of new graduates, especially soft skills in the factory. “To attract high-quality labor, the company does not necessarily start with engineers but can still use technical secondary labor, as long as they meet the requirements. To secure this source of labor, we have coordinated with several vocational training institutions to accompany students from the beginning to their graduation,” said Mr. Long.

At a recent seminar on “Trends and Solutions for the Mass Recruitment Market”, Ms. Le Thi Doan Trinh, Deputy General Director of Human Resources at Scommerce, shared that the company currently has 20,000 employees, of whom only 1-2% are recruited through training institutions. “At present, only the transport industry can recruit trained laborers. As for new industries that are developing rapidly, we have to learn by ourselves. For example, the job of a shipper seems to be unskilled labor, but in reality, it requires certain skills, such as knowing how to use smartphones, classify goods, and take care of customers…” shared Ms. Trinh.

For businesses, this cooperation helps them understand the training capabilities and characteristics of the educational institution, allowing for joint training plans.

Similarly, Duy Tan Plastic Joint Stock Company, which owns five factories in Ho Chi Minh City, Long An, and Binh Duong, considers training as a competitive advantage. “Our recruitment strategy focuses on internal talent development. For indirect labor, we prioritize recruiting fresh graduates and training them to become professional employees. As for direct labor, we recruit inexperienced people and train them by our experienced HR team,” shared Mr. Tran Minh Duc, Head of Talent Acquisition at Duy Tan Plastic Joint Stock Company.

In Quang Ninh, Jinko Solar Industrial Co., Ltd. has coordinated with the Management Board of Quang Ninh Economic Zone to organize recruitment and training to meet the company’s labor demands. Cooperation between vocational training institutions and enterprises benefits all three parties involved: the training institution, the enterprise, and the learners. For the training institution, this linkage creates opportunities to mobilize resources from enterprises to improve the scale and quality of training. For enterprises, cooperation helps them understand the training capabilities and characteristics of the educational institution, allowing for joint training plans.

According to statistics, about 75% of Vietnam’s labor force will be affected by the Fourth Industrial Revolution. The sectors most impacted are typically labor-intensive industries such as textiles, footwear, factory workers, cashiers, etc. At the same time, many new industries have emerged, attracting a large number of workers, such as those related to electronics, industrial automation, mobile internet development, cloud computing, and more.

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