The new virus outbreak has affected 70% of local firms with 3.5-5 million people laid off or set to have their work hours reduced according to the Ministry of Labour, Invalids and Social Affairs.

Many people claiming unemployment insurance.

Before the COVID-19 outbreak, 80,000-90,000 joined the job market and about 11,000 became guest workers in other countries every month. However, since April and May, about 60,000 people became unemployed each month after raw material supply chains were interrupted and goods were unable to be exported.

The second wave would have an even larger impact on the economy and private sector, especially small-scale companies will be in great difficulties because the market will be in a near-frozen state. The ministry has consulted with the government to launch a second financial support package focusing on accommodation, tourism and service sectors.

In the worst-case scenario, Vietnam will continue to see 60,000-70,000 people become unemployed every month in late 2020 and up to 70% of the local firms will feel the impact. The number of people that will be laid off or have their work hours reduced and wages cut could reach 3.5-5 million people.

The economic growth rate in the second quarter was 1.81%, the lowest in the past 10 years. 1.3 million people also lost their jobs during this time.

Ta Van Thao, director of Hanoi Centre of Employee Service, said currently 400 people were claiming unemployment insurance each day. This number still hasn't changed much compared to 2019's figures because Hanoi’s economy is still vigorous. The impact on the market could be affected by the outbreak development and any official responses.

Moreover, when COVID-19 affected the job markets in January and March, they saw a surge in the number of people filing for unemployment insurance in April and May. They still have to wait to see how the second wave has affected the market.

When filing for unemployment insurance, the employees will be given financial support and other supports such as free vocational courses if they want. They will be given VND1m a month for a maximum of six months on vocational training. After finishing the course, they will be given a job offer.