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Sunday, July 21, 2024

Mass job cuts continue due to order shortfall in Q2

The Saigon Times

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HCMC – Due to a significant decline in new orders since the fourth quarter of last year, hundreds of thousands of employees across the country have faced job losses and reduced working hours, according to the General Statistics Office (GSO).

In the second quarter, an estimated 217,800 jobs were lost, primarily in sectors affected by the order shortfall, such as textile, garment, and spare part manufacturing.

The latest report reveals that approximately 241,500 employees in businesses nationwide experienced reduced working hours during this period, a decrease of 52,500 employees compared to the previous quarter. Many of these employees work in foreign-invested enterprises in the shoe-leather and textile-garment sectors. Provinces like Bac Giang, Binh Duong, Ninh Binh, and Thanh Hoa have seen the highest number of employees facing working hour cuts.

Simultaneously, an estimated 217,800 people lost their jobs in the second quarter. Textile and garment industries accounted for the largest portion at 16.8%, followed by electronic product and spare part production at 14.8%, shoes and leather at 14.1%, and wood processing at 6.1%. Job losses have been primarily concentrated in cities and provinces with significant industrial parks, such as HCMC, Binh Duong, and Bac Ninh.

The textile-garment, wood processing, and electronic product manufacturing sectors witnessed a sharp decline in the number of employees from March to June due to a lack of new orders. These sectors saw respective decreases of 142,500, 16,900, and 30,200 employees compared to the previous quarter.

Uncertain economic conditions have prompted massive layoffs, leading many employees from industrial parks and the construction sector to shift to the service industry.

Statistics show an increase in both the volume and percentage of job losses in the second quarter. Among those affected, 1.07 million individuals lost their jobs at working age, representing an unemployment rate of 2.3%.

The Mekong Delta and southeastern regions experienced the highest unemployment rates. In HCMC, the number of people losing jobs at working age in the second quarter accounted for 3.71%, reflecting an increase compared to the first quarter, while the number decreased to 1.23% in Hanoi.

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