Pham Anh Thang, Deputy Chief of the Office of the Ministry of Labour, Invalids and Social Affairs, said that along with the implementation of the above policies, especially the drastic implementation of the Government's strategy of vaccination against Covid-19, the situation so far has been basically controlled, the socio-economic situation has improved, and most industries and fields are in the recovery and growth stage. Accordingly, the labor market gradually recovered, when in the first quarter of 2022, the labor force was 51.2 million people, an increase of 440,000 compared to the fourth quarter of 2021; the labor force participation rate was 68.1%, up 0.4% from the previous quarter; the number of employed employees was 50 million people, an increase of 132.2 thousand over the same period last year, but mainly in the informal sector.

Overview image of the Conference (source: Internet)

In addition, the labor demand also increased again, in which the recruitment demand of enterprises in 2022 is nearly 1.3 million employees, an increase of 18% compared to 2021, mainly unskilled labor or labor that does not require a degree or a certificate, (accounting for 75%); the number of unemployed and underemployed workers gradually decreased (decreasing by 489,000 people in the first quarter of 2022 compared to the fourth quarter of 2021). The trend of labor restructuring has returned to a positive direction, with a decrease in labor in the agricultural sector and an increase in labor in the industrial and service sectors compared to the fourth quarter of 2021 (currently 27.8%- 33.5%- 38.7%). The income of employees increased gradually, increasing by 6.4 million VND in the first quarter of 2022, by 20.1% compared to the fourth quarter of 2021 and by 2% over the same period last year.

However, according to Thang, besides the signs of prosperity, there are also a number of issues of concern, for example, the labor supply has not met the needs of enterprises in the period of economic recovery, especially for enterprises with highly qualified workers. In some localities, regions and industries, there is still an imbalance of supply and demand, and a shortage of local supply. Especially in the first quarter of 2022, there is a local shortage of about 120,000 workers (nearly 10% compared to recruitment demand), about 2-3% higher than in previous years, mainly due to the shortage of unskilled labor in the textile and garment industry, assembling electronic components, wood processing and some industries that are strongly affected and had to stop long activities such as tourism, education, etc.

The qualifications of workers have not yet met the requirements of technological restructuring, especially in the recovery period, a big number of enterprises are actively implementing digital transformation and applying industrial revolution 4.0 achievements. The labor structure between the formal and informal sectors has not yet returned to its pre-epidemic state and is lacking positive incentives to promote a strong shift in the number of informal to formal workers. The ability to connect supply and demand and introduce jobs to meet market requirements has not really met reality.

According to Mai Van Nhieu - Standing Vice Chairman of the People's Council of Long An province, from the present until the end of the year, Long An province needs about 51,000 workers. Only in the first 5 months of 2022, the recruitment demand of units and enterprises in the province is about 20,000 workers. Therefore, the need for human resources and solutions to recruit and retain employees is a painful problem for many leaders of units and businesses in the province.

Illustrative image (source: Internet)

How to retain employees?

Facing this common concern, Nguyen Thu Trang - Country Head of Permanent Recruitment, Executive Search and Consulting Services at ManpowerGroup Vietnam said: “After the Covid-19 pandemic, the employees' mindset and awareness about employment issues have greatly changed. Specifically, ensuring a stable income for employees is not necessarily a decisive factor in retaining them, but many of them are more concerned about their informal income. That is, with the same salary, even lower, but they care a lot about whether the social welfare regime is guaranteed, or whether the working environment is better. That is the source of income after salary, which ensures them a stable life in their old age, such as participating in social, health, unemployment insurance.

Illustrative image (source: Internet)

Meanwhile, according to Huynh Thi Ngoc Truc - Human Resources Director of Coca-Cola Vietnam shared the secret of employee retention: "At Coca-Cola Beverages Vietnam Ltd., we are retaining employees by classifying them to apply a method to take care of their interests closely. For example, if the employees are senior personnel, we will learn their aspirations so that we can respond promptly; for unskilled and potential workers, we must have a way to take care of them directly and let them know the plan to use them in the future.” However, according to Truc, in addition to salary, welfare and social insurance, health insurance regimes of employees is more important.

Mai Van Nhieu - Standing Vice Chairman of Long An Provincial People's Council also shared that, retaining employees is always a "hot" issue not only in Long An province. Therefore, to ensure labor resources, leaders of Long An province have directed functional sectors to focus on solving difficulties and problems of enterprises, promoting administrative procedure reform and strengthening the propaganda and dissemination of labor law education. At the same time, it is required that all levels, branches, unions and enterprises take good care of workers' lives and social security, strictly implement policies on social and health insurance, and create favorable conditions for employees to work with peace of mind./.