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Weak forecasting worsens unemployment situation: officials

An inaccurate labour database and poor forecasting is exacerbating the nation’s unemployment problem, officials admitted at a conference on Ocotber 26.
Weak forecasting worsens unemployment situation: officials ảnh 1Illustrative image (Source; VNA)
Hanoi (VNA) - An inaccurate labour database andpoor forecasting is exacerbating the nation’s unemployment problem, officialsadmitted at a conference on Ocotber 26.

Tao Bang Huy, deputy head of the EmploymentAdministration under Ministry of Labour - Invalids and Social Affairs (MOLISA),said a programme to collect labour information was piloted in four provinces in2008. In 2009, this was expanded to 15 other provinces and a year later, to therest of the country.

The programme aimed to establish a databaseof labour supply, workers’ professional qualifications and employment demand.It would update information about changes in occupational status and trainingundergone by workers. This database was to serve as a foundation for provincesto prepare their socioeconomic development plans and manage human resources.

After eight years of implementation, labourinformation on all 63 provinces and cities has been added to the database,covering about 45 million workers, labour demand and other information from311,115 entrepreneurs and businesses, as well as 5,095 non-agriculturalcooperatives.

Although the database is a promisinginitiative, its implementation has been obstructed by shortages of financialand human resources. Despite the continuous changes happening in Vietnam’slabour market, functional agencies, including the labour ministry only updatethe database once a year.

Furthermore, the data focuses mostly onofficial labour, not covering the informal sector, freelancers, farm workersand so on.

Doan Mau Diep, Deputy Minister of MOLISA,said that labour market management was one of the ministry’s major focuses. Acomprehensive evaluation of labour supply and demand will help orient, improveand balance the nation’s workforce, he said.

However, Diep also said that there werelimitations in the data collecting process that led to low accuracy and slowupdates, contributing to imbalances in the labour market and risingunemployment.

“The programme only collects data for someprofessions. Non-agricultural cooperatives, for example, have not been targetedby the programme,” Diep said.

Le Thi Trang Dai, Deputy Director of the Ba Ria – Vung Tau Province’s labour department, also highlighted difficulties inimplementing the programme.

“In our province, the supply – demandconnection happens on employment exchanges and websites. These have not beeneffective, since they depend heavily on proactive employers and employees (whoare willing to supply information and updates on a regular basis),” she said.

She also felt that in order to sustainablyreduce unemployment, long-term labour market forecasts, five to 10 years, wereneeded. However most Vietnamese companies did not have a long-term humanresources development strategy, she added.

Vu Quang Thanh, deputy director of Hanoi Centre for Employment Service, stressedthe significance of a comprehensive database.

He said: “In the near future, besidesinnovations in data collection, the quality of labour market information alsoneeds to be improved. Reliable and extensive data is the foundation for makingaccurate forecasts.” – VNA 
VNA

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