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The Job Seekers’ Wage Slump: Why the Race for $10–$20 Million Monthly Salaries is Fizzling Out

23 August, 2024

The Hanoi Center for Employment Services shared insights into the city’s job market in July, highlighting a positive trajectory in the capital’s economic recovery.

ALMOST 21,000 JOBS FILLED IN THE FIRST SEVEN MONTHS

In July, the Hanoi Center for Employment Services estimated a demand for approximately 58,585 jobs. This estimation was based on a survey of 13,181 vacant positions from over 2,800 businesses, with the majority of vacancies in the sectors of wholesale, retail, and other services; followed by the manufacturing and construction industries; and then the education sector.

The most in-demand positions among employers were customer service and sales staff, followed by office assistant roles.

A notable highlight was the strong recovery of the tourism industry in Hanoi after a prolonged period of COVID-19 impact. The growth in domestic tourism and international arrivals created a positive ripple effect, prompting businesses to ramp up their recruitment efforts to support their operational rebound.

In July, the tourism, restaurant, and hotel industries accounted for approximately 5.72% of the total job vacancies, translating to over 500 open positions.

The Hanoi Center for Employment Services also noted that July typically sees an increase in job-seeking activities as graduates from colleges and universities in the city enter the job market, creating a competitive dynamic in the labor market.

According to the Center’s survey, an estimated 36,023 job seekers were looking for employment in July. Of these, 47.57% had no specialized training and were mostly seeking jobs as production workers or sales staff. 21.26% had a university degree or higher and were looking for office jobs, accounting, or technical positions.

In terms of desired salary, 86.59% of job seekers aimed for a monthly income of VND 5-10 million, an increase from the previous month (June saw almost 74% in this salary range). Meanwhile, 7.74% sought salaries between VND 10-20 million, a significant drop from June’s figure of 17.14%.

The majority of job seekers fell into the 25-34 age bracket, accounting for 45.8%, followed by those aged 35 and above, and then the 15-24 age group.

In July, the city facilitated employment for nearly 21,000 people, a 12% decrease from the previous month. Additionally, over 4,500 people were supported in finding overseas employment in markets such as Taiwan, South Korea, and Japan. Cumulatively, Hanoi has provided job placements for 145,813 people in the first seven months of the year, achieving 88.3% of its annual plan.

LABOR MARKET STABILIZES BUT CHALLENGES REMAIN

Looking ahead, the Hanoi Center for Employment Services anticipates that increased investment in public infrastructure projects will bring long-term benefits to the city, in addition to short-term economic stimulus through job creation, boosted consumption, and improved infrastructure.

Connecting businesses and job seekers. Source: N.Duong.

Enhanced management of public investment is expected to address critical infrastructure bottlenecks in energy, transportation, and logistics, which form the foundation for Hanoi’s long-term economic growth.

Sectors projected to experience high recruitment demand include wholesale and retail; scientific and technological activities; manufacturing; and tourism, accommodation, arts, and entertainment.

However, some sectors are forecasted to witness a decrease in recruitment needs, including real estate, financial and insurance activities, and administrative and support services.

Mr. Vu Quang Thanh, Deputy Director of the Hanoi Center for Employment Services, shared that with the current pace of economic recovery, the demand for labor is expected to persist. Employers will likely place a stronger emphasis on vocational skills, while job seekers will continue to prioritize welfare benefits and insurance schemes.

Mr. Vu Trong Binh, Director of the Department of Employment (Ministry of Labor, Invalids, and Social Affairs), noted that while the overall labor market has remained stable this year, regional imbalances persist, with labor shortages in some areas and surpluses in others.

To address these disparities, the Department is directing local Employment Service Centers to organize online job fairs and is collaborating with the Department of Administrative Management of Social Order (Ministry of Public Security) to integrate labor information into the national population database. This integrated data source will provide insights into the labor supply, enabling more effective long-term connections between job seekers and employers.

To further support Hanoi’s labor market recovery and development, Mr. Vu Quang Thanh, Deputy Director of the Hanoi Center for Employment Services, outlined plans to implement job connection solutions and provide comprehensive support services for businesses and job seekers.

Additionally, the Center aims to establish a network for collecting, processing, and providing labor market information, spanning from the city to the grassroots level. Emphasis will be placed on enhancing online job transactions and leveraging information technology to match labor supply and demand.

The Center is also committed to enhancing the effectiveness of job fairs by organizing daily events across its system of floors. Special attention will be given to hosting thematic job fairs for specific industries and target groups, including vulnerable workers and online fairs connecting Hanoi with other provinces. For August, the Center plans to hold 22 job fairs.