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Firms limit recruitment as expenses for raw materials rise
The rising cost of raw materials for small- and medium-sized enterprises has caused companies to cut back on employee recruitment, according to officials.
Nguyen Thi Minh Tam, director of Marketing and Communications Navigos Group, forecast the workforce demand wouldn't increase in the last months of the year because of high inflation. Big companies, however, are still in need of workers.
According to the Viet Nam Association of Textile and Apparel (Vitas), its small- and medium- sized enterprises did not expand production because of rising input material costs.
Companies have reduced their workforce by 15-30 per cent to ensure economic efficiency in face of the rising cost of commodities.
By the end of June, the Viet Nam Automobile Industry Corporation (Vinamotor) has dropped its production to 1,400 units, a drop of 600 compared with the first half of 2005.
The decline in auto production has led to a redundant workforce as the corporation was forced to reduce staff.
Several of its affiliate companies including the May 1 Automobile Factory have suspended signing contracts for recruiting seasonal workers.
Le Hoang Chau, chairman of HCM City's Real Estate Association, said in recent months property transactions had dropped by 80 per cent.
The slump in the real estate market has led to dozens of cuts of salespersons, clerks and translators.
This has occurred in securities and insurance companies as well.
According to Vietnamworks.com, an online job recruiter, the number of recruitment request has also declined but demand for highly skilled staff remains high, the latter accounting for 67 per cent of the total recruitment in the last two quarters.
Doan Mau Diep, director of the Labour and Social Science Institute, said with the current tough economic conditions, the unemployment rate could rise slightly by the end of the year.
He proposed that the Government provide further financial assistance to small- and medium- sized enterprises so they could maintain production and workforce.
VNN
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