Education – Labor

Job losses on the way as firms look to downsize

WEDNESDAY, 08/07/2020 14:50:20

Many businesses are planning to reduce the number of employees on their payroll in the next few months.


Many businesses are planning to reduce workforce as a result of COVID-19. Photo: VNA

Although the COVID-19 pandemic has been controlled in Vietnam, its long-term effects will continue to be felt.

Many businesses are planning to decrease their workforce by 60-70 percent.

The Vietnam General Confederation of Labor and the Ministry of Labor, Invalids and Social Affairs (MoLISA) are consulting businesses and workers for a plan of support.

The confederation reported that 5,600 enterprises and more than 1,300 non-public non-business units had to be dissolved, stopped working or narrowed production, which affected jobs of more than 461,000 workers by the end of April.

Nguyen Dinh Khang, chairman of the confederation, said its activities in the beginning months of the year mainly focused on working with agencies, organisations and enterprises to deploy solutions to prevent and combat the pandemic at work.

It has accompanied businesses in restoring production and business, stabilising jobs, ensuring income for workers during and after social distancing.

The Department of Employment under the MoLISA said that if the pandemic is controlled well, it is estimated at least 70,000 to 80,000 workers would lose their jobs, 3 to 3.5 million workers would have to stop working and about 70-75 percent of businesses would be affected.

To help overcome difficulties for enterprises and workers, the MoLISA is summarising the recommendations of enterprises and workers about problems in the implementation of the 62 trillion VND (2.67 billion USD) bailout package.

Le Van Thanh, Deputy Minister of Labor, Invalids and Social Affairs, proposed loosening the conditions for easier borrowings.

For businesses borrowing loans to pay their employees, almost no businesses had access to this package up to now, he said.

VNA

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