In order to provide a comprehensive overview of the labor market trends in Vietnam in the first-half year of 2024, Navigos Search, a leading recruitment service in Vietnam specializing in mid-to-senior level recruitment, has conducted and published its Labor Market Report for the first half of 2024. The report analyzes the fluctuations and emerging trends within the Information Technology, Electronics, and Chinese-invested Manufacturing sectors, providing employers with valuable insights to support their business development.
Overview of the Global and Vietnamese Labor Markets
According to reports from global reputable organizations, global employment growth is expected to remain positive in 2024 and 2025, but the growth rates will be relatively low, approximately 0.8% in 2024 and 1.1% in 2025. The labor force participation rate is expected to decline from 66.4% (in 2000) to 60.5% and 60.4% in 2024 and 2025, respectively.
In contrast, the General Statistics Office reported that Vietnam is experiencing a positive trend in the number of workers and the labor force participation rate. However, the unemployment rate, which includes individuals currently not working, seeking employment, and available for work, remains relatively stable at 2.27%. The labor market still faces challenges, particularly in urban areas where the unemployment rate is 2.68%. Additionally, the youth unemployment rate (ages 15-24) has increased by 8% in the first half of 2024.
Information Technology (IT) - Telecommunication Sector
At the end of 2023, the global IT sector faced significant layoffs, with over 262,000 employees losing their jobs, primarily from major technology companies such as Meta, Google, Amazon, and Microsoft. This wave of layoffs was mainly due to the rapid growth following the COVID-19 pandemic, which led to overhiring and inefficient operations.
In Vietnam, however, Navigos Search observes that the IT-Telecommunications labor market still exhibits high recruitment demand, particularly for experienced professionals (accounts for 77.3%). This demand is driven by the digital transformation needs of domestic businesses and the investment from foreign projects in Vietnam, which create a favorable environment for the continued growth of the IT sector.
Considering the rapid development of new technologies, Navigos Search advises job seekers to acquire essential skills such as AI and Machine Learning to enhance their competitiveness in the job market.
Electrical-Electronics Sector
The global trend towards clean and renewable energy strengthens, boosting recruitment demand within the electrical-electronics industry. Since the end of 2023, the sector has seen robust growth driven by the expansion in the production of consumer electronics, electric vehicles, and energy storage technologies (e.g., lithium-ion batteries).
According to Navigos Search observations, the electrical-electronics sector's labor market still shows a high demand for experienced professionals (accounting for 74.43%). Significant demand remains for management positions (16.42%) and other roles (8.1%).
To succeed in this competitive labor market, candidates in the electrical-electronics sector need to acquire specialized skills and deepen their understanding of renewable energy technologies and energy management systems, reflecting the global shift towards sustainable and efficient energy solutions.
China-Invested Manufacturing Sector
China's investment trends in Vietnam are shifting towards high-tech industries, components, and parts for industrial production, electronics, and automotive sectors. In the first half of 2024, the labor market for Chinese-speaking professionals has become more dynamic, evidenced by an increased demand for Chinese-speaking staff.
Navigos Search reports that the China-invested manufacturing sector prioritizes experienced professionals (68.26%) and those with management experience (21.94%). Companies with Chinese investment are expanding and diversifying their production activities, necessitating a skilled and experienced workforce to maintain and enhance operational efficiency.
Ms. Hoan Tran, Associate Director of Navigos Search Northern, advises:
"Currently, the high demand for Chinese-speaking candidates at Chinese enterprises has led to a limited supply of such candidates. To address this, companies might prioritize recruiting Chinese-speaking staff for a few key positions while using interpreters for additional support. In the long term, companies could consider programs that encourage employees to learn Chinese on-site or offer study grants. Some Chinese companies also encourage their staff to learn English to facilitate international work. ”
Ms. Hoan Tran, Associate Director of Navigos Search Northern
Kindly find a detailed version of this report at:
Vietnamese version: Báo cáo 6 tháng đầu năm 2024
English version: Report for the first-half year of 2024.