Causes of labor shortage in the Northern provinces
The provinces of Bac Ninh, Bac Giang, Thai Nguyen, Ha Nam, Hung Yen, and Thai Binh are the destinations of many large-scale FDI projects in the fields of electronics, semiconductors, and precision engineering. The pace of factory expansion is rapid while the local working-age population is limited, leading to a situation where many factories compete to recruit for a constant labor source.
In addition, a portion of young workers tend to move to big cities or choose freelance work (shipper, online business) instead of working in factories, further shrinking the supply of unskilled labor in the region.
Consequences for manufacturing enterprises
- Extend recruitment time, affecting new line operation progress.
- Increased personnel costs due to having to compete with salary and benefits with neighboring factories.
- The quit/job-hopping rate is higher because workers have many factory choices in the same area.
Inter-provincial labor supply solution
One of the effective solutions is to expand recruitment sources to neighboring provinces that are not saturated with labor, combining accommodation arrangements and shuttle buses to attract workers from other provinces. Professional labor supply units with multi-province recruitment networks have a great advantage in quickly responding to this need compared to single self-recruiting factories.
Combine official and seasonal workers
With cyclical orders, businesses can maintain the official workforce at an optimal level and supplement seasonal workers through suppliers during peak seasons, avoiding intense recruitment pressure.
Frequently asked questions
Why have wages increased but it's still difficult to recruit enough workers? Because the local labor supply is absolutely limited - increasing wages only helps competition between factories in the same area, does not create new labor sources, it is necessary to combine and expand recruitment areas.
Does interprovincial labor supply incur large costs? There are additional costs for transportation and accommodation compared to on-site recruitment, but they are usually still lower than the cost of interrupting production due to lack of human resources.
Does Nhân Kiệt have a recruitment network in the Northern provinces? Yes, Nhân Kiệt provides labor in many Northern provinces including Bac Ninh, Bac Giang, Thai Nguyen, Ha Nam, Hung Yen and surrounding areas.