- Vietnam’s labor force hit the highest level since 2019. According to the General Statistics Office (GSO), Vietnam’s total labor force grew by around 146,600 people QoQ (+0.3% QoQ) and 217,300 people YoY (+0.4% YoY) to 52.54 million in Q2 2024, marking the highest quarterly level since 2019. Additionally, the labor force participation rate increased 8 bps QoQ to 68.7% (-34 bps YoY) (Figures 1 & 2).

- Total employment improved, driven by rising employment in the services sector. In Q2 2024, total employment increased by nearly 126,600 jobs QoQ to 51.5 million (+217,400 jobs YoY). Of the total employment, employment in the services sector was the key driver to growth of total employment in Q2 2024, increasing by around 216,800 jobs QoQ to 20.8 million (+443,600 jobs YoY). In addition, employment in the industry & construction sector increased by 28,300 jobs QoQ to 17.0 million (-66,000 jobs YoY). In contrast, employment in the agriculture, forestry & fishery sector declined by 118,500 jobs QoQ to 13.7 million (-160,100 jobs YoY) (Figures 3 & 4).

- However, informal employment increased while formal employment contracted. In Q2 2024, the number for informal employment increased by around 271,700 people QoQ to 33.6 million (+209,900 people YoY), while the number of formal employments declined by around 145,100 people QoQ to 17.9 million (+7,500 people YoY). As a result, the informal employment rate edged up 0.4% to 65.2%, the highest rate since Q4 2022 (Figures 5 & 6).

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