Economy chugs along as job creation, unemployment rise

VOV.VN - Vietnamese companies maintained their steady pace of hiring in the third quarter of the year, helping the economy add thousands of new jobs, according to new government data unveiled on December 2 in Hanoi.

The number of unemployed ticked up by 29,000 to 1.11 million, largely because the labour force swelled with scores of new young would-be workers lacking skills needed to meet the requirements of the private sector.

According to the Institute of Labour Science and Social Affairs out of the total number of unemployed, 642,600 are unskilled young workers. The balance of the unemployed are largely college graduates that have degrees for skills that are not in high demand.

The jobs report shows that the economy continues to create jobs and that wages continue to grow — but more work needs to be done, said Director Dao Quang Vinh of the Institute in a statement.

Recent indicators suggest that economic activity lost some speed as it entered the last quarter of the year with the manufacturing PMI and industrial production growth moderating in October.

On the external side, exports have slowed largely related to the Samsung phone scandal, following the termination in production of the faulty mobile phone, which had been being manufactured in Vietnam.

However, the overall trend for the economy shows steady growth with strong jobs growth.


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