▪ How to measure unemployment rate

▪ Understand different categories of

unemployment
▪ Introduce several policies for reducing
unemployment

2
 Dân số Population
Dưới 15 tuổi

0-14 Từ 15 tuổi >=15

LF Labor Force (LF)

Ngoài LF
Non-LF Có việc Employed

Thất
Unemployed
nghiệp
Source: GSO 2021, Labor Force Survey 2020
Based on the answers to the survey questions,
the GSO places each adult into one of three
categories:
 Employed
 Unemployed
 Not in the labor force
 THE BREAKDOWN OF THE POPULATION

Employed
Labor Force
(146 million)
(154.5 million)

Adult
Population
(233.4 million)
Unemployed (8.5 million)

Not in labor force

(78.9 million)

6
▪ A person is considered employed if he or she is in
the working-age range and has spent most of the
previous week working at a paid job.
▪ A person is unemployed if he or she is in the
working age range and being on temporary layoff,
is looking for a job, or is waiting for the start date
of a new job.
▪ A person who fits neither of these categories, such
as a full-time student, homemaker, or retiree, is
not in the labor force.

7
Labor Force
 The labor force is the total number of
workers, including both the employed and
the unemployed.
 The BLS defines the labor force as the sum
of the employed and the unemployed.

8
The labor-force participation rate (LFPR) is
the percentage of the adult population that is
in the labor force.

Labor force participation rate

Labor force
= 100%
Adult population

9
The unemployment rate is calculated as
the percentage of the labor force that is
unemployed.
Number unemployed
Unemployment rate= 100%
Labor force
Source: ILO (2020) – World Employment & Social Outlook 2020
Source: ILO (2020) – World Employment & Social Outlook 2020
Source: ILO (2020) – World Employment & Social Outlook 2020
Source: ILO (2020) – World Employment & Social Outlook 2020
Source: ILO (2020) – World Employment & Social Outlook 2020
 Unemployment by Duration

Less than 5 weeks

5-14 weeks

Business cycle peak

15-26 weeks
Business cycle trough

27 weeks and over

0 10 20 30 40 50
Percentage of unemployment
16
 Thất
Unemployed
nghiệp

Tự nhiên
Natural Chu kỳ
Cyclical

Tạm thời
Frictional Cơ cấu
Structural Cổ điển
Classical
Categories of Unemployment
 The natural rate of unemployment
 It is the amount of unemployment that the
economy normally experiences.
 It does not go away on its own even in the long run.
 The cyclical rate of unemployment
 It refers to the year-to-year fluctuations in
unemployment around its natural rate.
 It is associated with short-term ups and downs of
the business cycle.
Unemployment and Real GDP
Natural rate of unemployment:
consisting of frictional and structural
unemployment
 Frictional unemployment: occurs with the
normal workings of the economy, such as
workers taking time to search for suitable
jobs and firms taking time to search for
qualified employees
 Structural unemployment: occurs when
there is a mismatch of skills and jobs..
▪ Government programs can affect the time it
takes unemployed workers to find new jobs.
▪ These programs include the following:
 Government-run employment agencies

 Public training programs

 Unemployment insurance
▪ Government-run employment agencies give
out information about job vacancies in order
to match workers and jobs more quickly.
▪ Public training programs aim to ease the
transition of workers from declining to
growing industries and to help disadvantaged
groups escape poverty.

22
▪ Unemployment insurance is a government
program that partially protects workers’
incomes when they become unemployed.
 Offers workers partial protection against job
losses.
 Offers partial payment of former wages for a
limited time to those who are laid off.
▪ Unemployment insurance increases the
amount of search unemployment.
▪ It reduces the search efforts of the
unemployed.
▪ It may improve the chances of workers being
matched with the right jobs.

24
▪ Details are provided in class
▪ Sources:
• VHLSS;
• Labor Force Survey by GSO;
• ILO on Youth unemployment
 Dân số đang làm việc, % theo độ tuổi và giới tính

91.96 92.8 92.94

90.03 89.97 91.17
87.34 88.06 87.93 88.85
87.2 87.07
84.11 84.73 83.92 83.3
82.26
78.96
77.18
72.47
68.46
64.99
62.4 63.1
61.3

54.46
52.45
47.34
43.64

36.89 35.52

27.6
23.72
21.45 21.62 20.66
18.98
15.99
12.72

0.47
0.46
0.44
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 >=80

Total M F

Source: LFS Q1/2019

26
 Dân số đang làm việc, % theo tuổi và ngành

15.41
23.24 20.72 19.57
24.92
33.03 29.08
33.42 37.37
41.35 41.32 39.61 37.96
42.36 13.84
6.87 7.31
9.26
12.21
29.79
16.86
21.91
38.83 27.09
30.52
37.78 37.21 33.67
72.41 73.12 70.75
65.82
58.72
46.97 50.11
40.72
34.94
27.75 29.87
20.87 21.48 23.97

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 >=80

Agri Indus&Constr Services

Source: LFS Q1/2019

27
 Dân số đang làm việc theo tuổi và vị thế việc làm
100%
5.7
11.3
90% 16.9
25.7
34.1 21.8
80% 44.4
40.1 19.9
48.1
18.2
56.5
70% 64.4 63.3
68.1 15.3
60% 13.4
11.3
50%
10.3
40% 10.0
66.3 70.2
45.9 61.5
30% 10.4 55.5
43.7 48.7
22.8 13.2
36.9
20% 29.7
23.5
10% 17.2
9.5 12.4
1.5 2.9 3.8 4.5 5.0 3.8 3.5 3.4 2.4 2.2
0% 0.2 0.4
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 >=70
Chủ cơ sở Tự làm LĐ gia đình Xã viên HTX Làm công ăn lương

Source: LFS Q1/2019

28
 Dân số đang làm việc, % theo tuổi và loại HĐLĐ
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 >=80
Không thời hạn 1-3 năm Dưới 1 năm HĐ khoán Thỏa thuận miệng Không HĐLĐ

Source: LFS Q1/2019

29
 Trình độ học vấn của người lao động và loại HĐLĐ

Không HĐLĐ
79.66

Thỏa thuận miệng

HĐ khoán

Dưới 1 năm

1-3 năm

56.58
Không thời hạn

0 10 20 30 40 50 60 70 80 90 100

>DH So/trung/cao dang Tieu hoc den THPT Khong di hoc/Chưa ht tiểu học

Source: LFS Q1/2019

30
 % Dân số đang làm việc có BHXH, theo nhóm tuổi và giới tính
60

50

40

29.6
30
26.71
24.13

20

10

0
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 >=80 Total

Total M F

Source: LFS Q1/2019 31

 % Dân số đang làm việc có BHXH, theo nhóm tuổi và khu vực sống
60

50

42.01
40

30
26.71

20
18.86

10

0
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 >=70 Total

Total Urban Rural

Source: LFS Q1/2019

32