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| Up to 16,100 workers in Hanoi have registered for unemployment benefits in the first 11 months of the year, up almost 4 fold from last year. |
Among those, 10% are skilled workers, such as those with managerial experience, and often collaborate with foreign organisations. Many of these job losses are due to the project ending.
According to Vu Trung Chinh, Director of the Hanoi Employment Introduction Centre, this year, the global economic downturn has wreaked havoc on the city's employment market. Many companies had to scale back operations, especially those in the production and export sectors.
The number of unemployed labourers has risen sharply since October. The figure is expected to continue to rise into next year. Relocation of a number of factories from inner-city areas to the outskirts is another reason for job losses in Hanoi.
After 8/3 Textile Company moved to the suburban area early in the year, more than 1,000 employees registered for unemployment benefits. Hanoi textile Garment Corporation (Hanosimex) had around 2,300 employees who registered the unemployment benefits, along with about 300 from a company called Hanoi Mechanical Limited company (HAMECO).
The Hanoi Employment Introduction Centre has set up eight offices to help deal with issues related to unemployment insurance. However, many companies try to evade taxes and paying their social insurance, including unemployment insurance. This causes added difficulties for labourers.
According to the centre, from January 2012, the city will increase the number of job placement session to four per month, instead of the current just three.
The city has set a target to create more than 140,000 jobs in 2012.