Despite in Vietnam is far from that as it

Despite the seemly optimistic mention of the falling unemployment rates in background information, the current unemployment situation in Vietnam is far from that as it is plagued with a stark trend of having high unemployment rates amongst the youths, in specific, college and university graduates. Indeed, the national unemployment rate of Vietnam in 2017 is at a low of 2.06% whilst the unemployment rate amongst the demographics mentioned above are as high as 7.67%, as recorded in the second quarter of 2017. With university graduates having the highest unemployment rate amongst the different demographics in Vietnam, this is an apparent problem that the Vietnamese Government would have to resolve in order to further improve the standard of living of the Vietnamese.To figure out the reasons for such a phenomenon, we must look at the types of unemployment affecting Vietnam’s economy. As analysed earlier, Vietnam is currently not facing any recession and is in fact having economic growth as mentioned above. This is backed up by the overall decrease in Vietnam’s national unemployment rate, where “the rate of unemployment among people of working age declined to 2.26 percent, the lowest in the last five quarters”. Thus, it can be concluded that there is no cyclical unemployment.The bulk of the unemployment problem seems to fall under the unemployment type of frictional unemployment and that of structural unemployment. Firstly, the unemployment rate of these demographics is significant as they are the very group of people that are likely to experience the effects of frictional unemployment. The university and college graduates are ones who are ending their education to pursue work. It is common for workers who are initially entering the workforce to require time to search for a job thus being unemployed for that period of time. It is a short period of unemployment which the individuals are prepared for, as long as the job market is stable. However, what is unusual is that for a country is to have such a demographic to be unemployed for an exceptionally long amount of time with high percentages of unemployment. As data may show “unemployment rates among university, college and vocational school graduates were 3.63 percent, 4.96 percent and 3.5 percent, respectively” which are all relatively high.Diving into the problem with further research, it would seem that the problem lies in the education system of Vietnam. Vietnam’s universities and colleges are in fact failing to prepare the youths for more complex work. As Vietnam is a communist state, “college students frequently spend much of their first two years learning about revolutionary leader Ho Chi Minh, socialism and party history at the expense of critical thinking and other skills expected by employers”. The employers that want workers who possess the skills required to do the work needed. Thus, many of the college and university graduates do not make the cut for employment. For families who are wealthier, they do try to get their children into western institutions that will give them the qualifications they need to achieve employment. However, most families in Vietnam are not able to afford such foreign education for their children due to the expenses required to send them there. Therefore, despite that most Vietnamese graduate from college and university, with a degree, it would be of no help in getting them the employment in their chosen field as they simply do not have the skills required to meet the job requirements. This would seem to be a structural unemployment problem as there is a mismatch of the skills of workers out of work and the skills required for existing job opportunities. Such unemployment is more problematic and long-lasting, explaining the long and high unemployment amongst the graduates. By having such unemployment rates amongst their graduates, it is potentially harming to the individual level, to the families directly affected and to the economy as a whole. This is because being unemployed in the long-term would demotivate the individual, cause them to lose self-esteem and possibly cause the individual to have high anxiety and depression. In terms of social costs, there may be increased crime rates as joblessness would force them to seek other means of fulfilling their needs and it may also cause a political unrest if the people put the blame on the Government. Lastly, for the country, it would mean a definite decline in consumption and investment and having labour resources left idle. If the problem is left unsolved, the unemployment will spiral into other issues for Vietnam. Thus, with such an analysis and finding, it would seem that in order to improve on the current unemployment situation, the government would need to implement certain steps to reduce the unemployment rate amongst the college and university graduates. The obvious measure would be to improve the employability of the unemployed graduates. In this case, the Vietnam Government would need to decide to send these workers to upgrade their skills to help them gain employability and pre-empt against structural unemployment. Also, to further improve the employment situation, the Vietnam Government who need to consider reforming the education system to allow it to be more efficient and equip the youths required skills needed to enter the workforce. A mention is also needed to highlight the fact that the unemployment rate figure is imperfect. In Vietnam’s unemployment situation, the unemployment rate really is understated. This is attributed to the fact that for the few university or college graduates who are employed may be underemployed and may be working at jobs below their level of skills and qualifications in order to provide for their families. As an example from a news article, “Nguyen Van Duc graduated two years ago with a bachelor’s degree in economics from one of Vietnam’s best universities. Today, he earns about $250 a month as a motorbike taxi driver in Hanoi”. Also, if workers are not able to find a job for long periods of time, they may totally give up on ever finding a job and become a discouraged worker, further making the unemployment rate understated.