Vietnam youth employment and labor market challenges

Vietnam is facing significant challenges regarding youth employment, driven by digital transformation, artificial intelligence, and the green transition. Data from the first two quarters of 2026 indicated that the unemployment rate for youth aged 15 to 24 reached 8.67%, nearly four times the general unemployment rate.

Approximately 1.4 million young people in the country were classified as NEET (not in employment, education, or training). Beyond raw unemployment numbers, experts have raised concerns regarding job quality. In 2024, 57.5% of youth employment was informal, and only 41.4% of young workers participated in social insurance, leaving a large portion of the workforce without adequate protections or skill development opportunities.

By October 2026, the situation showed further strain. Minister of Home Affairs Nguyen Tien Hai addressed the issue of 1.6 million young people who are currently unemployed, a group often referred to as the “3-no” demographic (no job, no schooling, and no training), accounting for 11.2% of the youth population. During this period, the unemployment rate for youth aged 15 to 24 rose to 9.07%, compared to a national average of 2.22%.

While these figures remain lower than the global average of 20% and the Southeast Asian average of 16%, officials noted that rapid technological shifts—specifically artificial intelligence, automation, and digital transformation—are altering the labor market. To address these shifts, Minister of Science and Technology Vu Hai Quan announced new policies to empower young researchers, including scholarship programs for 1,500 outstanding students and research support for doctoral candidates that can reach up to 1 billion VND per year.