The labor market is facing significant challenges due to severe labor shortages in labor-intensive industries for 2024–2025. Many businesses are struggling to recruit qualified workers to meet their production expansion, resulting in delays or even downsizing. What are the effective solutions to overcome these labor hurdles and ensure business growth?
Growing challenges in hiring
Major cities like Hanoi, Ho Chi Minh City, and Binh Duong were once top destinations for migrant workers. However, as pay gaps between regions narrow and the cost of living in urban areas continue to rise, many workers are choosing to work in their hometowns. This shift has reduced the labor supply in major cities, particularly in sectors with a high proportion of unskilled labor.
While labor supply is shrinking, demand remains high. In Ho Chi Minh City alone, businesses are looking to hire over 50,000 workers in Q1 2025 - a 7% increase from the same period last year. To maintain business operations, companies must rethink their hiring strategies and adopt flexible workforce models to avoid disruptions.
(Source: Ninh Binh News)
Flexible approaches in recruiting and retaining laborers
Currently, many businesses have been implementing various strategies to tackle hiring difficulties, including:
Improving compensation and benefits policies, along with job security to ensure better income and working conditions.
Providing a clear career path: offering opportunities for promotion into roles such as full-time employee, team leader, or department head. This motivates workers the motivation to stay loyal to the company, improve their skills, while increasing their income.
Adopting flexible workforce models: utilizing outsourced, contingent, and project-based workers along with workforce solutions tailored to each production phase or shifting market demands.
These strategies not only help businesses maintain a stable workforce but also boost productivity and strengthen employee engagement.
(Source: VGP News)
Proactive hiring solutions for businesses
Partnering with workforce solutions providers like Manpower Vietnam has become one of the most optimal strategies for businesses across industries to proactively access a quality labor supply. "We provide flexible workforce solutions tailored to diverse industries. Our highly mobile talent pool can be deployed across provinces and regions, allowing businesses to meet their production demands during both peak and off-peak seasons,'' Ms. Cao Le Thanh Loan, Senior Operations Manager, Staffing & Outsourcing - Convenience South Vietnam and HR Consulting Services at ManpowerGroup Vietnam shared.
Staffing and outsourcing services are becoming go-to workforce solutions, enabling businesses to tap into a wider talent pool while optimizing labor costs. This is not just a short-term solution; flexible staffing helps companies stay operational even during times of uncertainty.
Learn more about Manpower Vietnam’s staffing and outsourcing services HERE.