Discussion About the Real Situation of Underemployment in Vietnam’s Rural Area

Topics: Unemployment, Economy, Labor Pages: 9 (2509 words) Published: June 28, 2011
Discussion about the real situation of underemployment in Vietnam’s rural area


Vietnam started as a backward agricultural country. After more than 20 years of Renovations process, the economy of Vietnam is prospering.

Human capital is one of four most important factors to develop the economy of a country. However, up to three-fourth (3/4) labor force of Vietnam is the rural labor and more than half of them is the labor of agriculture. Meanwhile, there is a significant figure of the labour – mainly the rural labor who are underemployed. Therefore, in recent years, Vietnam has coped to the serious underemployment in rural. The issue is more and more difficult especially in the period of economic crisis.

Not utilizing the labor source is a barrier to economic development and growth. So, it is high time for us to regard the underemployed situation in rural area as an urgent problem and find out the thorough and effective solutions.

Within the field of my knowledge, I would like to give out some data to analysis as well as subjective remarks on the issue.

I. The real situation:

1. The figures:

According to the statistical data of Ministry of Labor-Invalids and Social Affairs ( MOLISA):

• The population of Vietnam is about 83 mil people, in side, there are about 44,5 mil people in the labor force. The number of rural labor is more than 33 mil people, approximately 74,5% of the labor force.

• Average 51-65% of the total labor is the agricultural labor. It equivalents about 67-86% of rural labor who work in agriculture. ( the data fluctuate from 2000 to 2008)

• The rate of underemployment of Vietnam is 5,1% (in 2008), increasing 0.2% compared with 2007. In side, the rate in rural area is 6,1%, while in urban area is only 2,3%. The rate of rural underemployment is still forecasted that it raises to 6,4% in 2009.

In term of the labor supply of rural area:

Vietnam has a numerous labor supply, especially the labor in rural area. There are two sources of labor supply. One source is a long-term supply. During the period 2000-2008, average from 550.000 to 623.000 rural labors participate in the labor force per year- but most of them are the unskilled workers just graduating from secondary or high school. The other is a short-term supply- a trend has formed recently. There are a significant number of labor moving from urban to rural to seek jobs. This has created the pressure for labor market in rural, which is naturally difficult to solve the problem of employment.

Otherwise, in term of the labor demand of rural area:

The employment scale in agriculture trends towards decreasing- from 23, 49 mil (in 2000) to 23,02 mil (in 2004) and falling to 22,17 mil (in 2007). It means that the number of agricultural labors decreases average 200.000 people each year, and keeps decreasing in future. Whereas, the movement of labor structure from agricultural to non-agricultural field is very slow. During 2000-2006, the rate is only 9%.

From the statistical data, we can figure out the high different level of the supply and demand of labor in countryside. The number of rural labors is on the increase while the number of jobs is on the decrease. It leads the underemployment in the area to insolvable situation.

2. Impacts:

The number of underemployment getting more and more increasingly in rural forces us to consider the problem seriously. The real situation impacts a lot on not only the living standard of country folk but also many problem of social, security and the economic development of our country.

First of all, the situation impacts directly on the rural labors. When they do not have a job, their life is very deprived and hard. It is difficult to have chances to improve and raise their living standards. Like this, the gap between the rich and the poor of rural and urban in our country...
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