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Virtual increase of Labor

Monday, 26/09/2011, 22:15 GMT+7

Employment Agency under the Ministry of Labour - Invalids and Social Affairs announced increased demand for labor in the seven months of the year but overall the Department of Statistics has published about 30% of enterprises bankrupt.

Are the signs that demand for labor recruitment increase "virtual" in many localities. Through surveys quickly and Analysis Center predicted Institute of Social Sciences made in August last shows this fact.

Difficulties from labor-intensive sector

The area used is the most labor-intensive textile industry is difficult. According to the Textile and Apparel Association, the export orders in the spring - summer (from May 11.2011 - 4.2012) is greatly reduced, from 50-60%. Many order processing cost is reduced significantly, from 5 to 6%. The total input costs in this industry increased by 20% while prices declined orders from 5 to 10%. Many companies have moved production to the point of low cost satellites.

Many others also fall into the no less difficult. Timber industry enterprises have about 30 to 35% suspended. Many businesses are projected to be unable to hold in 2012. The village enterprises producing handicrafts will be recognized as very difficult in the future. In the South, sales of these firms fell by 50% due to input costs increase 50%, but output increased by only 20%. In the northern region due to high inventories, many factory occupations expected to stay about three months in order to avoid inventory.

 

The construction enterprise are "bad cry sample". Currently the majority of building construction, apartment construction was stopped due to the shortage of capital and raw material prices rise too high. Construction material prices increased by 25%, inflation of raw materials from 20 to 25%. Expected inflation for the construction of about 20%. According to the forecast from now until the end of these enterprises more difficult. There will be about a lot of investors to cancel the contract because of high prices, breaking the company's plans.

A hard pull in several industry sectors other satellites also declined. For example, the construction industry hard, the plumbing supply business in construction also declined about 50% over the previous year. High inventory of hot businesses to borrow at an interest rate of 6% / month to pay workers and trying to hold out.

Employment is up?

Meanwhile, the Department of Employment under the Ministry of Labour - Invalids and Social Affairs announced increased demand for labor in the seven months of the year but overall the Department of Statistics has published about 30% of enterprises bankrupt.

In fact from the survey quickly showed the difficulties of the business is impacting direct employment of workers. With the textile enterprises in HCM City workers with stable jobs to around the end of October. Small companies currently doing enough laborers to office hours, no overtime, some workers the company is entitled to a few days a week and receive 50% of basic salary. In Hai Duong, the company retains only the most formal labor, remaining self-employed workers leave for fewer jobs, lower incomes. Survey results show that the amount of income in business sector dropped from 60 to 70% of employees decreased from 50 to 60%.

Labor, the strongest reduction in construction areas. Due to budget cuts and constraints on credit to the real estate sector should be reduced to the amount of construction workers. Many businesses had ceased working for rotation to retain employees. For unskilled workers do each of high-rise, apartment is now waiting for the unpaid leave.

According to Nguyen Thang, director of analysis and forecasting, real southern labor shortages which are currently lacking only "virtual". The recruitment business is only to cover the amount transferred between businesses and the region. Do wages rise prices in the downtown area so labor-intensive industries tend to move production of the satellite area to reduce costs. Therefore, only recruit new employees to reorganize production in these regions.

"The stability of employment and income of workers is temporary even have early signs of decline. The difficulty of the labor-intensive industry that uncertainty about employment and income, "said Thang concluded.


Written : Tây - Giang