36% of HCMC unemployment benefit applicants have university degrees

Of more than 82,500 people filing for unemployment benefits in Ho Chi Minh City in the first six months of 2023, more than 27,800 hold a Bachelor’s degree or higher.

Nguyen Van Hanh Thuc, director of the HCMC Employment Service Center, said the number of applicants is up by 7% compared to same period last year.

The unemployment rate of workers with university degrees and higher is nearly double that of the whole country.

According to the Ministry of Labor, War Invalids and Social Affairs, in the year’s first half, more than 562,600 workers nationwide registered for unemployment benefits, and 13.8% of them have a degree or higher.

Of the applicants in HCMC, just over half had no degrees.

Thuc said the increasing number of applicants is a result of the downsizing policy imposed earlier by major companies in the city.

She cited the example of Taiwanese shoemaker Pou Yuen Vietnam, the largest employer in HCMC, that laid off over 2,000 workers in February due to a lack of orders.

As for those with a degree or higher, Thuc explained that some of them simply want to take a break. She said for this group, the highest benefit level rose to VND23.4 million (US$988) per month according to the months of paying social insurance premiums, but it would not be higher than 12 months.

According to existing rules, three months from the day they lose their job, people who have social insurance paid by their former employers by extracting the monthly salary can apply for unemployment benefits.

By Le Tuyet – VnExpress.net – August 1, 2023