The Youth Unemployment Crisis: Navigating a Challenging Job Market

In an interview with Tien Phong Newspaper, Hoang Linh (25, Hoang Mai district, Hanoi) – an employee of a pharmaceutical company in the area – shared that he was recently let go and his contract terminated as of June 1st.

According to Hoang Linh, he had been working at the company for 6 months, but recently, due to the discovery of numerous cases of counterfeit milk, medicine, and cosmetic products, authorities have intensified inspections. As a result, the company decided to downsize and terminate contracts with several employees, including Hoang Linh.

Meanwhile, Thu Hanh (27, Ha Dong district, Hanoi) shared that she also recently ended her contract with a garment company in the area after working there for just over a month. She cited the reason as being unable to keep up with the hectic work pace and wanting to find a more flexible work environment.

According to the Hanoi Center for Employment Services, young workers and those in their prime working ages have been the groups with the highest unemployment rates lately. Specifically, in April, workers aged 25-34 accounted for 44.6%, an increase from nearly 42.8% in March, and this trend has been consistent since the beginning of the year.

Regarding the reasons for this, the Hanoi Center for Employment Services explained that it is mainly due to employees’ contracts expiring or mutual agreements between employees and employers, as well as employees unilaterally terminating their contracts.

Additionally, other factors include businesses downsizing or dissolving, employees being disciplined or fired, and other miscellaneous reasons such as personal reasons or job transitions.

The Center also noted a significant increase in the number of people receiving unemployment benefits in April compared to previous months, indicating the challenges faced by a portion of the workforce in finding and retaining employment.

Specifically, the Hanoi Center for Employment Services received 7,297 applications for unemployment insurance in April, an increase of 2,300 cases from the previous month and 816 cases from the same period last year.

According to recruiters, most young workers lack practical work experience and skills. They also face competition from more experienced workers who have honed their skills over the years.

Moreover, employers are increasingly demanding higher educational qualifications and certifications, creating barriers for young job seekers. The ongoing process of automation and digital transformation may also contribute to the displacement of workers who lack the necessary skills and qualifications.