(Photo: VNA)

According to the Ministry of Labor, Invalids and Social Affairs, Vietnam’s labor market has bounced back during the first months of this year. Businesses want to recruit 1.3 million workers but in some localities, labor shortages have been reported.

Deputy Minister of Labor, Invalids and Social Affairs Le Van Thanh said it’s important to implement more direct incentives for workers and to strengthen the links between labor supply and demand among localities in order to address the labor shortage.

Thanh said: "We need to continue policies on house rental support for workers to encourage them to return to the workforce. We also need to strengthen communication between localities, facilitate workers’ travel, and provide them with initial subsistence allowances."

Many businesses have focused on training for workers to work in key economic zones with priorities given to the enterprises that are experiencing staffing shortages.

Secretary General of the Vietnam Federation of Trade and Industry Tran Thi Lan Anh said: "At present, there is huge shortage of skilled workers. Many businesses have tried to keep workers on staff by raising their salaries by 5-8% and providing them with subsidence allowances for petrol and meals."

Ngo Duy Hieu, Vice Chairman of the Vietnam General Confederation of Labor, said localities and businesses need long-term, fundamental housing polices for workers to encourage them to return to work.

Hieu said: "We need to adopt incentives including housing policies to encourage workers to return to work in key economic zones. After the COVID-19 pandemic, we find that housing is a crucial issue, especially amid the recent rise of rental fees. We also need to focus on helping workers to locate accommodation and schools for their children."

After the National Salary Council decided to increase minimum wage by 6%, the Ministry of Labor, Invalids and Social Affairs will submit to the government a draft resolution on regional minimum wage this year in order to help improve the living conditions of low-income people and ensure the rights and interests of workers and businesses.