Vietnam’s labor market is projected to add about 300,000 jobs in the first quarter of 2026, driven largely by stronger hiring in manufacturing after the Lunar New Year holiday, according to a bulletin released by the Ministry of Home Affairs.

Total employment is expected to rise to around 53 million persons in Q1, up by 300,000 from the previous quarter, signaling a clearer recovery after a softer end to 2025.

The ministry attributed the rebound to improving export orders and manufacturers’ production expansion plans.

Workers at a garment plant in Vietnam. Photo courtesy of Lao dong Doan The (Labor Union) magazine.

Recruitment demand is forecast to increase by about 3.1% in food processing and 2.6% in transport equipment manufacturing, making them the most labor-intensive sectors in the post-holiday period as factories resume and scale up operations.

By contrast, hiring is expected to decline in tobacco manufacturing, chemicals and chemical products, and machinery repair and installation, underscoring uneven recovery across industries.

Q4/2025 data showed Vietnam’s labor force at roughly 53.8 million people, with 52.7 million employed, up nearly 656,000 year-on-year. Services accounted for 40.8% of total employment, followed by industry and construction at 33.8%, and agriculture, forestry and fisheries at 25.4%.

Average monthly income of contract workers reached about VND8.7 million ($335) as of Q4, up nearly 3.9% from the previous quarter, supporting household consumption during a typically high-spending post-holiday period.

Meanwhile, 784,000 people were underemployed in Q4, and roughly 1.07 million were unemployed, equivalent to a jobless rate of 2.22%. Urban unemployment remained higher than the national average.

Notably, 61.2% of applicants for unemployment benefits lacked formal qualifications or certificates, while those with university degrees or higher accounted for 19.2%, indicating that unemployment risks are concentrated among low-skilled workers. The figures highlight the need for stronger vocational training aligned with business demand.

Separate research by ManpowerGroup Vietnam in its 2026 global employment trends and salary guide identified four major forces shaping the domestic labor market in coming years. These include the expansion of flexible and project-based work arrangements, particularly in information technology, digital marketing, content creation, e-commerce, and logistics.