Garment and textile sector hardest hit in layoff wave
  • |, Vietnam News, HNM | June 06, 2023 05:06 AM
The domestic garment and textile sector has been hardest hit in the on-going wave of layoffs due to the economic downturn, according to the Ministry of Labour, Invalids and Social Affairs (MoLisa) report.

The Molisa report showed that in the first half of this year, a total of 510,000 people had their job affected.

Among those, 280,000 stopped working or were fired, mostly in industrial parks and economic zones in Binh Duong, Dong Nai, HCM City, Bac Ninh, Hai Duong and Hanoi.

Roughly 195,039 workers had their working hours cut during the first half of the year.

Up to 8,644 companies had to cut their workforce due to the order shortage.

The garment and textile industry were hardest hit as up to 68,782 workers stopped their job or were fired. Meanwhile, 66,600 others in this sector had their working hours reduced.

It was followed by the electronic component and product sector with 45,075 people and the footwear industry with 31,653 people quitting their work or being laid off.

The highest rate of affected workers were untrained, accounting for 68 percent of the job losses.

Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung pointed out reasons for these problems, including persistent inflation and falling global demand following the Covid-19 pandemic and the Russia-Ukraine conflict.

Experts forecasted that layoffs could run until the end of 2023 as firms continue to trim their ranks in line with slumping global demand. Job cuts would be more evident in labour-intensive sectors, including textiles, footwear, and seafood.

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