More "sophisticated" labor market
The decline in the scale of the labor force in the first quarter of 2026 is assessed as a market screening phase to become "leaner" in the upcoming period.
The Statistics Office has just issued a press release on the labor and employment situation in the first quarter of 2026.
Data from the announcement of the Statistics Office shows a slight decrease in the scale of the labor force. In the first quarter of 2026, the labor force aged 15 and over was 53.6 million people, down 232.9 thousand people compared to the fourth quarter of 2025. Employment in the first quarter of 2026 was 52.5 million people, down 233.4 thousand people compared to the fourth quarter of 2025. Of which, employment in urban areas was 20.6 million people, accounting for 39.2%, down 122.2 thousand people compared to the fourth quarter of 2025; rural areas were 31.9 million people, accounting for 60.8%, down 111.2 thousand people compared to the fourth quarter of 2025.
Commenting on the information released by the Statistics Office, Mr. Le Quang Trung - former Deputy Director in charge of the Department of Employment, said that the decrease in labor force participation compared to the same period last year can be explained by the "pause to upgrade" trend of the young generation. Instead of accepting general jobs with "staggering" salaries, many workers are actively temporarily withdrawing to participate in short-term training courses on AI, semiconductors or green economy.
This is a positive sign showing that the labor supply is self-adjusting to adapt to the higher demands of the market. This period of silence is a preparation step to form a "leaner" labor force in the following quarters of 2026," Mr. Trung said.
Also according to Mr. Trung, instead of worrying about the quantity and scale of the labor force, it is necessary to focus on key solutions to improve the quality of human resources and wait for breakthrough opportunities.
Mr. Trung also proposed a "three-legged chain" solution to turn the situation around.
Activating the "smart social security bag": The government promotes support packages focused on vocational training. Accordingly, supporting unemployed workers to switch to industries that are thirsty for human resources such as installing solar power, maintaining electric vehicles or operating automated logistics systems will help shorten "empty" time and bring them back to the market with higher incomes.
Unlocking" the digital labor flow: Instead of considering freelance workers on digital platforms as groups outside the system, there needs to be a formalization mechanism and protection for this group. When digital platforms are well connected to the national job information system, a large number of "anonymous" workers will return to contribute to the overall growth indicators in a sustainable way.
Businesses proactively build resources: Businesses need to change their thinking from "recruiting when needed" to "nurturing resources". Closely linking with vocational schools to train according to orders will help eliminate the supply-demand mismatch, ensure that students graduate with jobs immediately, and help labor indicators recover to green again soon.
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