30% of HCMC’s unemployed are over 40

Nguyen Van Hanh Thuc, director of the HCMC Employment Service Center, said Wednesday that the number of applicants was up by 10% compared to the same period in 2022.

Most of the unemployed lost their jobs when their companies downsized, while a minority left their employment aiming to change to new careers.

Among the jobless individuals, 8% are under 24 years old, 62% belong to the 25-40 age group, and 29% – about 48,000 – are over 40 years old.

The proportion of jobless workers over 40 among those registering for unemployment benefits is increasing, with the figure 1.6 times higher in 2023 than in 2021.

In 2021, Vietnam’s southern metropolis was home to more than 29,000 unemployed workers over 40, accounting for over 26% of those wanting to receive unemployment benefits. This ratio was over 27% in 2022, corresponding to more than 40,600 people.

Analyzing the reasons for the increase in unemployment among older workers, labor expert Nguyen Xuan Son suggested that when facing difficulties, including lack of orders, manufacturing factories tend to reconsider their workforce size.

Normally, they tend to prioritize retaining younger workers for future training and recovery. In labor-intensive industries with time-based salaries and regular pay raises, long-term staff often mean higher salaries, making them more likely to be laid off.

Additionally, many companies have reported the situation in which long-term workers with less than 20 years of social insurance contributions chose to quit jobs and then apply for the state’s one-time social insurance withdrawal option.

In most cases, workers said they wanted to take out the money to start their own business, or deposit the money at banks, which they found more beneficial than continuing to work while paying insurance premiums or retirement pensions that are “too low.”

Of the more than 166,000 individuals seeking unemployment benefits last year, 51% have no qualifications, degrees, or certificates, and the average benefit they receive was VND5.5 million per month.

Three months from the day they lose their jobs, people who have social insurance can apply for unemployment benefits.

Unemployment benefit levels are equal to 60% of the average monthly salary on which unemployment insurance premiums are based (on the preceding six months before the employee quits). Employees who pay the full 12 – 36 months will enjoy three months of allowance.

After that, for every additional 12 months of unemployment insurance premium contribution, the employee will be entitled to an additional one month of benefits until a maximum of 12 months of benefits.