UNEMPLOYMENT

IN VIETNAM

DEFINITION
Unemployment

is defined as a situation where

someone of working age is not able to get a job but
would like to be in full time employment.
Note : If a Mother left work to bring up a child or if
someone went into higher education, they are not
working but would not be classed as unemployed as
they are not actively seeking employment.

UNEMPLOYMENT TYPES AND

CAUSES
There are several types of
unemployment, each one defined in
terms of cause and severity
NATURAL
Structural

Structural unemployment occurs when certain

industries decline because of long term changes in
market conditions.
Frictional

Frictional unemployment, also called search unemployment,

occurs when workers lose their current job and are in the process
of finding another one.

UNEMPLOYMENT TYPES AND

CAUSES

CYCLICAL
Cyclical

unemployment exists when

individuals lose their jobs as a result of
a downturn in aggregate demand. If
the decline in aggregate demand is
persistent, and the unemployment
long-term, it is called either demand
deficient, general,

UNEMPLOYMENT TYPES AND

CAUSES
Some other types
Seasonal

Seasonal unemployment exists because certain industries only

produce or distribute their products at certain times of the year.
Industries where seasonal unemployment is common include
farming, tourism, and construction.
Classical
Classical unemployment is caused when wages
are too high. This explanation of unemployment
dominated economic theory before the 1930s,
when workers themselves were blamed for not
accepting lower wages, or for asking for too high
wages. Classical unemployment is also called real
wage unemployment.

UNEMPLOYMENT TYPES AND

CAUSES
Some other types
Voluntary

Voluntary unemployment is defined as a

situation when workers choose not to work at the
current equilibrium wage rate. For one reason or
another, workers may elect not to participate in
the labour market.

THE REAL UNEMPLOYMENT

SITUATION IN VIETNAM
1.
2.

Some characteristics of the unemployed

Unemployment rate and underemployment
rate in the working age

SOME CHARACTERISTICS OF THE

UNEMPLOYED
1.The number and age structure of the unemployed, 2011
Table 1:
The age

total
15-29 year old
30-39 year old
40-49 year old
over 50
cities
15-29 year old
30-39 year old
40-49 year old
over 50
countryside
15-29 year old
30-39 year old
40-49 year old
over 50

Density(%)

The number of
unemployment
(million people)

Total

Men

Women

10464
6194
1620
1334
1316
5159
2692
944
749
773
5305
3509
673
582
541

100
59.2
15.5
12.7
12.6
100
52.2
18.3
14.5
15
100
66.1
12.7
11
10.2

100
60.8
11.3
11.1
16.8
100
54
13.7
13
19.3
100
68.2
8.7
9.1
14

100
58
18.5
13.9
9.5
100
50.7
21.9
15.7
11.6
100
64.8
15.4
12.3
7.6

%women

57.7
56.5
69.1
63
43.6
55.7
54.2
66.8
60.3
43.1
59.6
58.4
72.3
66.6
44.4

SOME CHARACTERISTICS OF THE

UNEMPLOYED

2. Structure of unemployed divided by the highest

educational level achieved, in 2011. Table 2:
The highest level

all

Percentage(%)
male
female

% female

100
2.5

100
1.8

100
3.1

57.7
70.6

8.6

6.6

10

67.2

Graduated from primary

school

20.7

18.7

22.2

61.7

Graduated from
secondary school

25.8

26.6

25.2

56.4

Graduated from high

school

19

19.9

18.4

55.8

Vocational

5.8

9.8

2.9

28.3

Professional level
college

5.6
4.4

5
3.9

6.1
7.4

62.5
61.8

No go to school
Non- Graduated from
primary school

UNEMPLOYMENT RATE AND

UNDEREMPLOYMENT RATE IN THE WORKING
AGE

The data about unemployment rate, 2011

Table 3:

UNEMPLOYMENT RATE AND

UNDEREMPLOYMENT RATE IN THE WORKING
AGE

The table about underemployment rate, 2011

Table 4:

UNEMPLOYMENT RATE AND

UNDEREMPLOYMENT RATE IN THE WORKING
AGE

Table about the unemployment rate in urban areas

characterized by age, 2011
Table 5:

UNEMPLOYMENT RATE AND

UNDEREMPLOYMENT RATE IN THE WORKING
AGE

The table shows the unemployment rate in Vietnam and some

countries in the world, 2011
Table 6:

THE IMPACTS OF THE

UNEMPLOYMENT
1.

Positive effect

2.

Negative effects

THE IMPACTS OF THE UNEMPLOYMENT

POSITIVE EFFECT

The real rate of unemployment = the

rate of natural unemployment
promote economic growth
labour less pressure for
companies to fire workers.

Surplus

THE IMPACTS OF THE UNEMPLOYMENT

NEGATIVE EFFECTS
1.

Economic:
Affect to the industriation and modernization
and difficult apply technology on industries.
shortage finance in some other key
industries.
Lost output(real GDP)
Labour market failue( inefficient way of
allocating resources)
Increase in relative poverty( rise in income
inequality)
the effect of unemployment has changed the inflation rate
and the price of the commodities and has led to unstable
market

THE IMPACTS OF THE

UNEMPLOYMENT
NEGATIVE EFFECTS
2.

Government:
Increased spending on unemployment
benefits and other income( welfare
payments)
Fall in revenue from income tax and
taxes on consumer spending
Fall in profits( decrease revenue from
corporation tax)
Rise in government borrowing

THE IMPACTS OF THE

UNEMPLOYMENT
NEGATIVE EFFECTS
3.

Peoples lives:
Finance:
Low income : lack of finance on doing
daily activities
Felling:
Unemployed : worried about their
future, bored, tired , stress put
peoples family happiness at risk.
Family Stress and Conflict
Normal worker: unsafe and unsecure

THE IMPACTS OF THE UNEMPLOYMENT

NEGATIVE EFFECTS
4.
-

Education:

build a beleif in the young generation

that they do not need to join in
universities and schools
- Because, in 2012, 63%
students can not find job
- parents can not afford fees for
childern to take part in schools.

THE IMPACTS OF THE UNEMPLOYMENT

NEGATIVE EFFECTS
5.

Security:

The

crime rate.
Raise social evils.

SOLUTIONS OF UNEMPLOYMENT
IN VIETNAM
To reduce the unemployment rate in theory
Natural unemployment
Cyclical unemployment

SOLUTIONS OF UNEMPLOYMENT
IN VIETNAM
To create all conditions for workers losing their jobs
To improve the unemployment insurance system

SOLUTIONS OF UNEMPLOYMENT
IN VIETNAM
Other solutions
Expanding labor market
Career orientation

SOLUTIONS OF UNEMPLOYMENT
IN VIETNAM
Reduction of working hours
Develop handwork commerce