Workers at the Việt Nam-Singapore Industrial Zone in the southern province of Bình Dương receive COVID vaccinations. — VNA/VNS Photo Dương Chí Tưởng

HÀ NỘI — The coronavirus pandemic has had great impact on the labour market, with an increase in the unemployment rate, according to the Department of Employment of the Ministry of Labour, Invalids and Social Affairs (MoLISA).

The department said that in the first seven months this year, the number of enterprises withdrawing from the labour market was higher than the number of newly established enterprises. Specifically, more than 79,700 enterprises withdrew from the market whereas 75,800 enterprises were newly registered.

On average, more than 11,300 businesses withdraw from the market every month.

The number of enterprises withdrawing from the labour market occurred in all industries, focusing heavily on wholesale, retail, automobile and motorbike repair, manufacturing and processing, construction, accommodation, real estate business and education.

Unemployment increased because many businesses were no longer able to cope with the pandemic. The number of unemployed in the second quarter was 1.2 million, accounting for 2.62 per cent of people of working age.

In July, the increased unemployment rate of people at working age in urban areas grew to more than 4 per cent.

The number of people who stopped working is different between regions. Specifically, in 19 southern provinces and cities that are applying social distancing following Directive No 16/CT-TTg, nearly 20 per cent of businesses have stopped working and nearly 3 million people are unemployed, accounting for 33.4 per cent of total employees.

In the central region, complicated pandemic developments in Khánh Hòa, Phú Yên and Đà Nẵng saw the rate of businesses temporarily suspending work at 3.4 per cent, with more than 500,000 unemployed workers, making up 15 per cent of total employees in the region.

In the northern area, by August 5, a total 288 enterprises had to suspend operations in Bắc Giang Province with 15,262 unemployed workers. In Hà Nội, 7,435 enterprises temporarily suspended operations with over 180,000 employees having to stop working.

Labour in the agriculture, forestry and fishery sectors suffered the least negative impact of the pandemic with 8.9 per cent of workers in this area affected, followed by industry and construction with 24.6 per cent, and service sector workers hardest hit at 30.6 per cent.

MoLISA has proposed a group of solutions to support businesses and employees in difficulties during the pandemic.

Localities have implemented solutions to serve as a basis for production and business recovery, economic development, and social stability, such as having programmes and policies to encourage young workers to improve their skills, to be ready to enter the labour market with necessary skills to meet the requirements of the economy in the fourth industrial revolution era.

They will continue to supplement capital sources for lending to business households and employees who are facing difficulties and need to borrow capital to restore production and create jobs. — VNS