Hanoi created jobs for more than 213,000 workers in the first 11 months of 2024, up 6.4% year-on-year, according to the Hanoi Department of Labor, Invalids and Social Affairs.

In the Hanoi labor market, the urban unemployment rate is expected to remain below 3%, in line with the targets set by the Hanoi People's Council.

Jobseekers attend a recruitment fair organized by Hanoi. Photos: Thuy Truc/The Hanoi Times

Nguyen Tay Nam, Deputy Director of the Hanoi Department of Labor, Invalids and Social Affairs, stated that the department has collaborated with various city departments and localities to achieve these results. The department has taken the lead in organizing job fairs and providing labor market information through the Hanoi Center for Employment Service, benefiting both job seekers and employers.

Of the more than 213,000 people employed, over 53,000 secured jobs through government-funded initiatives facilitated by the Vietnam Bank for Social Policies, with a total value exceeding VND 3.9 trillion (US$153.7 million). Additionally, more than 17,300 job seekers found employment after participating in interviews at job fairs organized by the Hanoi Center for Employment Service.

The city also facilitated the employment of more than 4,400 workers for overseas contracts. Moreover, more than 138,000 people were introduced to job opportunities through various enterprises and other means. The department expects to create new jobs for 225,000 workers in 2024, exceeding the target of 165,000 and reaching 136.3% of the assigned plan.

In 2024, the center plans to conduct 261 recruitment events with the goal of 18,500 workers. In the first 11 months of 2024, the Center organized 239 job fairs with the participation of nearly 7,300 companies, interviewed a total of over 49,100 job seekers, and successfully placed over 17,300 individuals.

Informal employment: challenges remain

The Hanoi Center for Employment Service hosts many job fairs every year.

A recent report by the Hanoi Center for Employment Service, covering the period from 2021 to 2023, shows that by 2023, there were nearly 1.9 million informal workers in Hanoi, an increase of 15.3%from the previous year, accounting for 50.2% of all workers. Informal jobs are mainly low-skilled and replaceable, such as small services, informal trade, and general labor, with many workers having low education or coming from rural areas.
Informal urban workers continue to face significant challenges, including lower incomes and a lack of rights and protections.

Vu Quang Thanh, Deputy Director of the Hanoi Center for Employment Service, said that while the informal sector provides significant employment for a large proportion of the population, it also poses significant challenges to the economy and society. He added that informal workers often face employment risks, and lack contracts, social insurance benefits, or other protections.

The report shows that, in terms of gender, there is a clear income gap between male and female workers in both the formal and informal sectors. Men consistently earn higher incomes than women across all years. This gap is due to differences in the types of work done by men and women, as well as gender inequalities in access to career opportunities and advancement.

In terms of urban and rural areas, the income gap between formal and informal workers has widened significantly. In urban areas, the income gap is nearly VND4 million ($157.6), with the average income for formal workers at VND12 million ($472.9) compared to VND7.9 million ($311.2) for informal workers from 2021 to 2023. In rural areas, the gap is about VND1.5 million ($19.7). 

This differential may be due to differences in working conditions, job opportunities, and economic development between the two regions. Urban industries and services are more robust, offering higher income opportunities, while rural workers are often engaged in agriculture or seasonal jobs with less stable incomes, the report said.