Vietnam braces for post-Tet labor crunch

The Ministry of Labor, Invalids and Social Affairs (MOLISA) anticipated a temporary, localized labor shortage in the labor market following the Lunar New Year (Tet).

The demand for new recruits in the first quarter of 2025 is expected to rise significantly, particularly in the manufacturing and service sectors.

To address post-Tet labor fluctuations, businesses often implement policies to retain employees and enhance benefits.

Additionally, a significant number of workers from public service units, affected by the restructuring and streamlining of the State apparatus, will enter the labor market. This will create pressure on employment connectivity for these individuals.

MOLISA noted that in the lead-up to the Lunar New Year 2025, there was a high demand for seasonal recruitment as businesses ramped up production to meet Tet demand.

In Ho Chi Minh City, the estimated demand for labor recruitment before the Lunar New Year stood at 28,525 positions, primarily concentrated in the trade and service sector, which accounts for nearly 70% of the demand.

Most businesses are striving to maintain or increase Tet bonuses to retain employees, while many out-of-province workers returning home early can also result in localized labor shortages.