37% of manufacturing industry employees must work outside the industry to supplement their income.

DNHN - 60% of workers choose to reduce their living expenses in response to the current economic climate, 37% seek part-time employment outside the company, and 3% increase their shift hours when opportunities arise.

Recent data from Navigos Group, the leading provider of human resource recruitment services in Vietnam, revealed that more than fifty per cent of enterprises (enterprises) in each manufacturing industry experienced a decline in total revenue ranging from less than ten per cent to over forty per cent.

To overcome obstacles, a portion of businesses will choose to scale back production by closing factories, reducing production lines, reducing working hours, and cutting labour.

58% of manufacturing workers have had their salaries cut by 30-50%, 34% have had their total salaries cut by 10%, and 6% have had their salaries cut by 10-30%, according to statistics. Only 2% had a salary reduction of more than 50%. In addition, employees have their working hours reduced, their overtime pay reduced, and their benefits eliminated.

In addition to a decrease in salary, employees lose income from overtime sources and receive fewer benefits than usual.

60% of workers chose to reduce their living expenses, 37% sought outside part-time employment, and 3% increased their overtime hours when opportunities arose.

When income is reduced due to a decline in employment, reducing the cost of living is almost always the first course of action. During the outbreak of Covid-19 in 2021, a survey conducted by the Institute of Workers and Trade Unions yielded similar results, with 21% of respondents stating that they must eat more instant noodles, 48% of people having to reduce their daily meat consumption, 22% of workers having to switch from daily shopping to using food provided by relatives, and 15% of cases opting to eat fewer meals together.

In addition, 11% had to borrow money from family members, while 0.3% had to borrow money at high-interest rates, use black credit, or sell their social insurance books.

A positive indication from the Navigos Group survey is that employees have chosen to enhance their knowledge and abilities to maintain a competitive edge. The majority of employees choose to improve their production management, financial management, and technology application skills.

To stabilise their lives and maintain their jobs, 35% of employees desire no salary reduction, 28% a long-term contract, 28% the maintenance of allowances/benefits, and 9% the assurance of sufficient working hours.

The Navigos Group's Report on Human Resources in the Manufacturing Industry 2023 is based on a survey of more than 1,000 employees and 500 market-based companies in the Manufacturing sector, including the High-tech industry; Textile/Leather and Footwear industry; Pharmaceutical/Biotech industry; Agriculture/Forestry sector; Industry Products industry; Consumer Goods/Food Manufacturing industry; Construction material manufacturing industry; Automotive/Automation industry; and Aerospace/Defense industry.

According to the report on the current state of human resources in the manufacturing industry in 2023 published by the labour market research firm Navigos Group, "the majority of manufacturing companies are currently promoting the automation of their operations."

Accordingly, 52% of businesses in the high-tech industry automate all processes. In the automobile industry, 82 per cent of companies are applying for production. In labour-intensive industries such as textiles, leather, and footwear, 60% of businesses also apply to produce.

According to a Navigos Group expert, the majority of businesses are automating some or all processes. Therefore, workers must continuously update their knowledge and skills to operate and control machines. From there, new employees can continue to adapt and develop their work.

Nine industries reduce output and employment the most:

In the high-tech industry, 56 per cent of companies chose to downsize by reducing labour.

52% of businesses in the textile/leather/footwear industry choose to reduce working hours.

In the pharmaceutical/biotechnology industry, fifty per cent of companies opt for a solution that reduces working hours.

In the agriculture/forestry industry, 38 per cent of businesses reduced labour and 33 per cent reduced working hours.

In the industrial products sector, 46% of businesses reduced their work hours.

In the consumer goods/food manufacturing industry, 42% of companies are reducing working hours and 38% are laying off employees.

In the construction material manufacturing industry, 38 per cent of companies reduced work hours and 34 per cent reduced labour.

52% of businesses in the automation/automotive industry employ labour reduction solutions.

In other industries, 42% of businesses were forced to reduce labour to remain profitable.

Mai Anh (female)