Sunday, September 19, 2010

Low wages result in shortage of manpower

HCMC employers offer a wage which is 30-40% lower than what potential employees expect.

This has caused a huge gap between the demand and supply of employment.

Many enterprises located in Ho Chi Minh City and in several of its industrial zones in the North are complaining about the shortage of workforce, especially skilled labourers.

However, according to the Ho Chi Minh City Centre of Forecasting Manpower Demand and Labour Market Information, over half of the labourers who hold bachelor’s degrees and have over one year’s experience working as well as qualified expertise demand VND5 million ($254) per month. However, on average, most employers agree to pay them only VND3 million ($152) per month.

Labourers looking for jobs at a recruitment centre

Manual labourers want to be paid about VND2-3 million ($101-152) per month whereas their wages are offered to be only VND1.5-1.8 million ($76-91) per month.

Employers and employees cannot come up with mutual agreements on wages, leading to the manpower shortage and an increase of unemployment rates.

As a result, employers continue facing difficulties in recruitment and many labourers cannot find jobs with satisfying wages.

According to experts, in the past, many labourers did not have enough information on recruitment options. Therefore, they did not have many choices to apply for jobs and they were forced to work at companies that paid them lower wages than expected.

In the past two years, labourers have had access to more information channels on recruitment so they, especially qualified labourers, can have a chance to compare wages and working conditions among different companies.

Many labourers from the North now do not want to move to the South for work, putting industrial zones in the South in shortage on manpower.

Realising this change, several big companies have decided to offer higher wages to employees along with more strict requirements on their expertise.

No comments:

Post a Comment