The latest employment data provided by the General Statistics Office of Vietnam (GSO), which updated quarterly labor market data as of the end of September and the monthly employment index as of October 1st (released ‘as of the end of October’), still showed a strong recovery in the labor market from the disruptions caused by the COVID pandemic (Figures 1 – 4).  However, weakening global demand has started to translate into recent declines in new orders and exports (see our note, Trade weakens further on global demand slowdown), which has led to recent reductions in production and working hours. 

- According to the General Confederation of Labor, 485 enterprises (including 352 foreign-invested enterprises, or 72.6% of this number) in 25 provinces and cities have recently reported that they have reduced production and working hours due to recent declines in new orders. These affected enterprises are mainly located in the South, which accounts for 61.9% of the total enterprises and 87.4% of total employees in this group (Figure 5). 

- Accordingly, 631,329 employees have been affected (1.2% of total employment as of Q3 2022). Of the total, 569,589 employees have their working hours reduced (accounting for 90.2%); 34,563 employees have their labor contracts terminated (accounting for 5.5%), 31,012 employees took unpaid leave, paid leave or had labor contracts temporarily suspended (accounting for 4.3%). (Figure 6).

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