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Hai Phong sheds 3,500 jobs this year

Update: September, 17/2012 - 10:05

HAI PHONG (VNS) — Workers in Hai Phong City have become the latest victims of the global economic crisis, with data from the struggling city's Department of Labour, Invalids and Social Affairs revealing as many as 3,500 jobs have been lost in the last nine months.

Job losses in the textile-garment and leather shoes sector accounted for more than 1,400 workers, followed by the shipbuiding industry with almost 870. Employees in the steel industry, mechanical engineering, construction and services sectors also suffered the same fate.

Besides the city figures, an extra 3,180 people lost their jobs in Hai Phong's traditional trade villages.

The dismal statistics were attributed to the prolonged economic difficulties in the world and domestic markets since 2008, which have forced many businesses to scale down their operations due to declined order contracts and overdue loans.

It's thought roughly 450 companies in Hai Phong have declared bankruptcy in this period.

Job losses in the northern city are forecasted to continue until the end of this year. Despite that, many enterprises are still experiencing a labour shortage.

In the first half of this year, about 23,300 people sought jobs through labour exchanges but only 2,071 people (under 10 per cent of job seekers) were recruited.

Low recruitment was due to workers lacking skills, qualifications and experience. On the other hand, a large number of unskilled workers were still not confident to go to the labour exchange when recruitment needs were high.

According to Dang Van Tang, deputy director of the provincial Department of Labour, Invalids and Soccial Affairs, in order to tackle the labour shortage, the city should develop a network of high-quality vocational training and improve the labour exchanges process. — VNS

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