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Graduate unemployment, unpaid salaries heading upwards

Released at: 12:17, 20/11/2014

Graduate unemployment, unpaid salaries heading upwards

A MoLISA report presented to the NA shows many graduates fail to find a job and a number of workers are not receiving a paycheck.

by Tuyet Minh

There were 174,000 unemployed graduates and $1.36 million in unpaid salaries in the first nine months of 2014, according to report tabled before the National Assembly (NA) on November 19 by Minister of Labor, Invalids and Social Affairs (MoLISA) Pham Thi Hai Chuyen before she faced a Q&A session..

The 174,000 unemployed graduates accounted for 16.8 per cent of unemployed people in the period, a significant increase against the 147,000 found to be unemployed during the first six months of the year.

The Minister pointed to the lack of dynamism among young people, adding that their chosen field of study was often impractical and failed to enhance their skills.

Youth unemployment in the third quarter of 2014 rose 0.33 per cent compared with the second quarter. Hanoi and Ho Chi Minh City are the country’s two biggest cities and also the homes of the highest unemployment rates, of 4.3 and 3.32 per cent, respectively.

Meanwhile, 83 enterprises owed $1.36 million in unpaid salaries to staff in the first nine months. The report also showed that salaries owed by 95 enterprises in Ho Chi Minh City, Binh Duong, Hai Duong, Hoa Binh, and Dong Nai provinces in the first eight months of the year stood at over $1.53 million. In the five cities and provinces, 5,340 workers had not been paid their salary. 

Compared with total outstanding salaries in 2013, however, the 2014 figures are actually an improvement. More than 10,000 workers were not paid their salary by 76 enterprises last year, to the tune of $3.8 million. Eighteen joint stock companies had the highest amounts outstanding, of around $1.23 million to 4,229 workers, while 13 State-owned enterprises owed 934 workers more than $727,000 in total. 

There was only one foreign-invested enterprises cited in the report, which owed nearly $60,000, whereas 44 private domestic companies owed 4,644 workers some $1.5 million.

In the first nine months of 2014 outstanding social insurance payments stood at over $331 million and outstanding unemployment insurance payments at $26.5 million. Bankruptcy was one factor, which led to $2.58 million being owed by 203 foreign enterprises that left the country without making payments for 5,874 workers.

Minister Chuyen also said that labor regulations have been clarified within a number of legal documents. She therefore recommended that the situation regarding bankruptcies be resolved.

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