Labor resources in Hai Phong characteristics and changes in the period of 1999-2015

HNUE JOURNAL OF SCIENCE DOI: 10.18173/2354-1067.2017-0049 Social Sci., 2017, Vol. 62, Iss. 5, pp. 175-183 This paper is available online at LABOR RESOURCES IN HAI PHONG CHARACTERISTICS AND CHANGES IN THE PERIOD OF 1999-2015 To Thi Hong Nhung Faculty of Geography, Hanoi National University of Education Abstract. Hai Phong city has a relatively abundant labor resources with many advantages in terms of education and professional qualifications. However, Hai Phong’s labor force is still quite limited and does not really meet the requirements of dynamic development of the city. Therefore, analyzing the characteristics of the labor force with the strengths and weaknesses, changes and movement in the past is important to contribute to the efficient use of these important resources for the development of human resources and the development of the economy. Keywords: Labor resources, Hai Phong, labor force. 1. Introduction Labor is considered as the most important resources for the socio-economic growth and development. Hai Phong is a relatively crowded city, with abundant labor resources. In recent years, the labor resources (the proportion of the working age population, who are able to work and employed persons outside the working age) and the labor force (a major part of the labor resources, include employed persons aged 15 and over and the unemployed persons in the reference period) of Haiphong has changed considerably and has contributed to the growth and development of the city. However, the contribution of labor factor to economic growth in Hai Phong is generally low, and labor resources are still limited and do not meet the requirements of the development. In fact, there were not many researches in this field in Haiphong, and almost focused on one part of Haiphong’s labor resources: human resources in science and technology, such as: [6], [8]. . . Therefore, analyzing the characteristics and evaluating the strengths and limitations of Hai Phong labor force is an important and urgent need. 2. Content 2.1. The size of the labor resources With a population of over 1.96 million people (2015), ranking second in the Red River Delta and seventh in the country; with the population growth rate of 0.9%; the Received date: 1/12/2016. Published date: 3/5/2017. Contact: To Thi Hong Nhung, e-mail: tohongnhungtnt@gmail.com 175 To Thi Hong Nhung population aged 15 and over accounts for 77.5%, and is in the period of "golden population structure" like the general trend of the whole country, therefore it can be said that currently Hai Phong has a relatively abundant labor resourrces, with over 1.3 million people, accounting for 66.6% of the total population in the city. Table 1. Population and labor resources, labor force of Hai Phong 1999 – 2015 1999 2005 2009 2010 2011 2012 2013 2014 2015 Population (thousand) 1,672.4 1,791.7 1,837.2 1,857.8 1,879.8 1,904.1 1,925.2 1,946.0 1,963.3 Labor resources 1,023.1 1,227.9 1,277.4 1,302.3 1,312.1 1,315.1 1,333.1 1,318.9 1,307.5 -% compared to population 61.2 68.5 69.5 70.1 69.8 69.1 69.0 67.8 66.6 Labor force 842.9 980.9 1,016.7 1,085.3 1,088.0 1,089.0 1,125.6 1,127.7 1,128.1 -% compared to population 50.4 54.0 55.3 58.4 57.9 57.2 58.5 57.9 57.5 (Source: calculated from data of Haiphong Statistics Office, [1, 2, 4]) Over the past decade and a half, the size and proportion of Hai Phong’s labor force has changed dramatically. The size of the labor force continues to increase but the pace is slowing down and this trend seems to have stopped in 2014, ending the momentum of continuous rise. In particular, the change in density can be seen more clearly and earlier. Haiphong’s labor force occupies more than 2/3 of the total population of the city, and is always on the rise because this is the result of the transition from the previous high population growth period with increasing population entering the working age, until 2010. But since 2011, the trend has reversed with the proportion decreased: in 2011, it was 70%, by 2015 it was only 66.6%. This can be explained by two reasons: the number of people entering working age increases slowly due to the decrease in fertility and population growth rates; and the increase of over-working age groups. The results show that although Hai Phong’s labor force is still relatively abundant in scale, it has gradually declined in proportion, and has shown signs of aging along with the aging trend of the population in general, which has become apparent. These factors will inevitably affect the city’s labor force in the near future. Of the 1.3 million people in the labor resources in Hai Phong, about 1.13 million people participate in economic activity (labor force), accounting for 86.9%. The remaining 13.1% are non-economic activity participants such as housewives, students or those who have no need for work ... Haiphong labor force, in terms of scale in the area The Red River Delta, ranked third after Hanoi and Nam Dinh, occupies 9.4% of the labor force of the entire Red River Delta. Thus, labor force in Hai Phong accounts for 57.5% of the population. The population participating in economic activities continues to grow in volume during the period 1999 - 2015, as it remains one of the important growth poles of the Northern dynamic economic region, which creates jobs for local workers and attracts migrant workers. However, Hai Phong’s labor productivity growth has slowed down in recent years. Generally, Hai Phong’s labor force growth rate is moderate and relatively stable, with an increase of 1.8% per annum between 1999 and 2015. On spatial distribution, labor resources and labor force in Hai Phong are still 176 Labor resources in Hai Phong characteristics and changes in the period of 1999-2015 more concentrated in rural areas, accounting for 57.9%, while urban areas account for 42.1% (2015). This distinction is quite distinct, divided into two distinct dimensions of population size, labor resources as well as labor force in rural and urban areas. Thus, although Hai Phong is a national center of grade I, a centrally-run city and relatively early-formed in comparison with many other cities in Vietnam, more than half of Hai Phong’s labor is still concentrated in rural areas. Labor force in urban areas tends to increase but slowly and unstably. The proportion of labor force in urban areas in Hai Phong in 2015 was lower than that of Ha Noi when Hanoi expanded to Ha Tay (44.6%), significantly lower than that of Quang Ninh (53.9%) Which is not a centrally-run city like Hai Phong. Despite the large size of the urban population in Vietnam, the proportion of urban laborers in particular, Haiphong’s urban population generally has a slower rate of growth than that of other big cities. If in 2007, the urban population size and urban scale of Hai Phong were ranked 3rd in the whole country, by 2015, it fell down to fifth. This is because over the past years, the economic development of Hai Phong associated with the process of industrialization and urbanization has been slower than some other dynamic cities and provinces. 2.2. Participation rate of labor force The rate of participation in labor force in Hai Phong in 2015 was 75.6%, which is about three quarters of the population aged 15 and above joining the labor force, lower than the national average of 77.7%. It is noteworthy that this is the opposite trend in the participation rate of labor force, especially the working age of Hai Phong and the country. In recent years, the proportion of labor force participation in Viet Nam’s working age population has been on the downward trend, mainly due to a decrease in the participation rate of the 15-24 age group, due to economic growth in the period which has contributed to improving living standards, enabling young people, especially in rural areas, to have the opportunity to study instead of entering the labor market as early as in the past. Meanwhile, the proportion of general labor participation and the participation rate in Hai Phong’s age is on the upward trend. This is explained by the fact that the population structure and labor resources in Hai Phong have entered an aging phase, the under-employment rate decreases rapidly while the growth rate of labor resources is still higher than the population growth rate. The rate of labor participation increases in both rural and urban areas in Hai Phong. However, in the Red River Delta, which is densely populated and abundant in the labor force, Hai Phong, with a large labor supply, and a high and increasing tendency to participate in labor force, has also been encountered abd faced with many problems, especially the pressure of creating jobs, and particularly providing decent work for the workers. Hai Phong’s labor force participation rate varies between men and women. This is also the general situation of the country.Women can do housework at home, while men are more likely to be healthier, therefore to have more opportunities for better training, and they are not the mainstayers in household chores. Labor market for men is also bigger; The proportion of male housewives in the non-economic activity population is usually very low. The difference is more noticable in some island districts such as Cat Hai and some coastal districts (Tien Lang, Kien Thuy, Thuy Nguyen, Do Son) where there is a high fishing, aquaculture development, which are labor-intensive jobs, and men are also involved in the craft. However, in recent years, the differences in the proportion of labor 177 To Thi Hong Nhung force participation by sex in general tend to shrink as women have become more and more engaged in the labor market. The difference in participation rates of labor force is much more significant in the rural and urban areas of Hai Phong, which are separated by 12.2 percentage points (2015). The rate of labor participation compared to the total population of Hai Phong in 2015 was 57.5% but there was a big difference between urban districts and suburban districts. In the districts of Ngo Quyen, Le Chan, Hai An and Kien An, the rate was only 47% and 48%, but suburban districts, especially the relatively rural districts such as Kien Thuy, Tien Lang, Vinh Bao, An Lao, this rate is much higher: 63, 64%. The cause of this difference is due to the socio-economic conditions between urban and rural areas, rural occupations are mainly in agriculture, forestry, fisheries and handicraft villages. There are still people in the school age group and many older people (over 60 years old) are still involved in labor, contributing considerably to income generation for the family.While in urban areas, people have the opportunity to lengthen their time to study, enter the labor market later, the number of people engaged in economic activity is concentrated in adulthood, and they are often rested, less engaged in labor. Therefore, among the districts of the city, the rate of joining the labor force also differs from the general trend of increasing from the urban districts to the coastal, remote and island areas. However, the gap between urban and rural areas and between Haiphong’s regions is also on the downward trend. 2.3. Labor structure Regarding gender structure, Haiphong’s labor force is relatively balanced between men and women. Table 2. Hai Phong labor force classified by sex 1999 - 2015 1999 2005 2009 2010 2012 2013 2014 2015 Male 50.5 51.2 51.1 50.7 50.1 49.3 49.4 50.5 Female 49.5 48.8 48.9 49.3 49.9 50.7 50.6 49.5 (Source: Calculated from Haiphong Statistics Office, [1, 2, 4]) Over the period 1999 - 2015, the labor force structure by sex of the city also changed considerably. At times, the strengths of Hai Phong were heavy industries that were suitable for men, such as shipbuilding, metallurgy, cement production ... so it attracted many male workers, like other neighboring provinces such as Thai Binh, Hai Duong ... so male labor force prevailed over women. In the recent years, in parallel with the narrowing process of these industries, the diversification of services, the development of industrial zones attracting female workers, has also changed the proportion. In addition, women are also increasingly engaged in the labor market. Table 3. Hai Phong labor force structured by age group 1999 - 2015 Age group 1999 2005 2009 2015 Aged 15 – 24 19.3 18.2 17.3 11.0 Aged 25 – 54 73.8 74.2 72.4 69.5 55+ 6.9 7.6 10.3 19.5 (Source: Calculated from Haiphong Statistics Office, [1, 2, 4]) 178 Labor resources in Hai Phong characteristics and changes in the period of 1999-2015 The age structure of Haiphong labor force in 2015 shows that young workers (15 to 24 years old) make up the least proportion because many are still schooling and not yet participating in the labor market. At the main working age (25 to 54 years), accounting for 69.5% of labor force, there is a fairly even distribution of the proportion between groups. The age structure of labor force is also an indicator that Hai Phong’s labor force shows signs of aging. Statistics show that the proportion of youngworkers (15 - 24 years old) in Hai Phong accounts for 11.0% of total labor force, lower than 14.8%while the 55+ group accounts for 19.5% , Higher than the country’s 15.9%. The proportion of young laborers in Haiphong decreased rapidly: 8.3 percentage points from 1999 to 2015, while labor productivity increased by 55.6% over the same period: 12.6 percentage points. In particular, the decrease in the labor force participation rate and the increase in the proportion of 55+ workers in recent years are much faster than in the previous period: over the last half-decade (2009 - 2015), the proportion of youth laborers decreased To 6.3% whereas in the previous decade the decrease was only 2%. The increase in the proportion of 55+ workers is similar: 2009 - 2015 increased by 9.2%, while the period longer than before (1999-2009) was only 3.4%. The main labor force in the 25-54 age group also decreased continuously in proportion. This again reflects the age structure of Haiphong’s population in general. In general, labor force in particular is aging rather quickly, faster than the national average. Of course, young workers declined sharply in proportion because of the undeniable importance of the economy: the economy has developed and the living standard has been increased, therefore the young people are trained more and more carefully for the future and enter the labor market later. There is a difference in the distribution of labor force by age group between rural and urban areas, especially in the 55+ age group, the difference up to 9.5 percentage points indicates that urban workers leave the labor force earlier, less engaged in the labor market at the end of working age. Similarly, by sex, young workers in Hai Phong do not have much difference in the proportion between men and women but to 55+, the gap has widened towards female workers. That is because many older female workers are still working and want to work, and they are easier than men to accept working conditions to continue to get a job and income to support their family. Table 4. Age group structure of Hai Phong labor force classified by sex and by urban - rural, in 2015 (%) Aged 15-24 Aged 25-54 55+ Urban areas 9.8 76.2 14.0 Rural areas 11.8 64.7 23.5 Male Labor force 11.4 70.7 17.9 Female Labor force 10.6 68.2 21.2 (Source: calculated from Haiphong statistics Office) 2.4. Education level In terms of education level, the statistics show that Hai Phong has a relatively high level of education compared with the whole country. However, compared to the, the level of differences is not high because most of the provinces in the Red River Delta 179 To Thi Hong Nhung put emphasis on studying. The literacy rate of people aged 10 and above in Hai Phong is still on the upward trend and remains high (from 2010, the Statistics Institution does not investigate this indicator as the whole country has a relatively high number) [5]. The illiteracy rate of laborers in Hai Phong is very low (0.5%). The percentage of laborers who have not or just completed primary schools is not high. Most of the untrained workers are qualified from upper secondary or higher. And the rate of workers merely completing the general education curriculum tends to decrease rapidly to make room for the completion of professional education programs such as vocational training, vocational training to college or further. However, the exception is that the pre-school and under-graduated rates tend to increase slightly, but these components account for a small proportion of the educational level of Hai Phong’s workers. Table 5. Education level of Hai Phong labor force in the period of 1999 - 2015 (%) 1999 2009 2010 2011 2012 2013 2014 2015 Out of school rate Hai Phong 4.2* 2.1 0.3 0.3 0.3 0.4 0.5 0.3 Red River Delta 0.8 0.8 0.6 0.6 0.4 0.5 0.6 Vietnam 4.6 4.3 4.0 3.9 3.3 3.7 3.5 Percentage of people who have not completed primary school Hai Phong - 6.4 2.6 2.6 3.1 3.2 3.7 3.1 Red River Delta 5.5 3.8 3.3 3.4 2.2 3.1 3.2 Vietnam 13.7 11.6 11.9 11.6 9.8 11.2 11.2 Primary completion rate Hai Phong 13.0 14.5 10.4 10.8 12.4 12.9 12.7 12.9 Red River Delta 16.2 12.7 12.3 12.5 10.7 11.6 12.1 Vietnam 27.6 25.4 24.4 24.5 23.6 23.6 23.7 Secondary school graduation rate Hai Phong 43.9 38.0 43.8 42.2 37.2 37.1 35.8 33.3 Red River Delta 41.6 44.8 45.1 42.3 40.8 41.4 40.6 Vietnam 28.5 31.3 31.5 30.7 31.0 30.2 29.9 High school graduation rate + Hai Phong 38.9 39.0 42.9 44.1 47.0 46.4 47.3 50.4 Red River Delta 35.9 37.9 38.7 41.2 45.9 43.4 43.5 Vietnam 25.6 27.4 28.2 29.3 32.3 31.3 31.7 (Source: Calculated from Haiphong Statistics Office, [ 2, 3, 4, 9, 10]); * Including those who have not yet completed primary school; in 1999: educational attainment of the population aged 13 years and over; since 2009: education level of population aged 15 and above. The educational level of Haiphong labor force differs between urban and rural areas and urban districts, but in general the difference is not significant. 2.5. Technical qualification In terms of technical qualifications, in general, labor force in Hai Phong is also considered high comparable to the general level of the country. 180 Labor resources in Hai Phong characteristics and changes in the period of 1999-2015 Table 6. Percentage of trained employed workers in the period 1999 – 2015 1999 2009 2010 2011 2012 2013 2014 2015 Hai Phong 16.2 20.3 22.4 23.8 24.5 27.7 28.5 32.4 Red River Delta 10.6 19.4 21.0 21.5 24.5 29.8 26.8 27.2 Vietnam 7.9 13.3 14.6 15.7 16.9 20.4 18.7 19.4 (Source: Calculated from Haiphong Statistics Office, [2, 3, 4, 9, 10] 1999: calculated for the population aged 13 and above) The rate of trained employed workers of the city in 2015 was 32.4%, quite high compared to 19.6% of the country. This is because Hai Phong is a large city, one of the training centers of the country, so education and training are highly emphasized, people themselves are aware of the investment in education, improving the educational level to get a job and better income. The quality of workforce and the level of training are thus gradually upgraded to meet market requirements. In the period 1999 - 2015, the level of Haiphong labor force was improved significantly. The number of trained workers tended to increase in both size and proportion. In terms of size, trained laborers in Hai Phong increased from 113.8 thousand in 1999 to 365.5 thousand in 2015, more than three times higher, while the proportion also increased by 18.9 percentage points in the same period. The proportion of trained labor force in Hai Phong in 2015 was 32.4%, slightly higher than the Red River Delta (27.2%) and significantly higher: 12.