RESEARCH FINDINGS

(28/02/2022)

RESEARCH FINDINGS

Workers in the textile and garment, and hospitality industries during the pandemic: Labor income plummeted while the gender gap rising.

The COVID-19 pandemic has heavily impacted workers in Vietnam's textile, garment, and hospitality industries. Data from the Labor Force Survey shows a substantial reduction in labor income and a widening gender income gap.

Real income decreased significantly in Quarter 2 of 2020 compared to Quarter 2 of 2019 before recovering during Quarter 3 and Quarter 4 of 2020. However, labor income in Quarter 3 of 2021, when the fourth wave of the outbreak hit, decreased significantly compared to Quarter 3 of 2020.


The pandemic had a heavy impact on workers in the export-oriented manufacturing industries in Quarter 3 of 2021. Due to weak external demand, real labor income in textile and garments in Quarter 3 of 2021 declined by 18.5% quarter on quarter, compared to the average reduction of 13.8% economywide.


Workers in the hospitality industry were hit hardest by mobility restrictions, including widespread and lengthy lockdowns in Quarter 3 of 2021. As a result, the income of workers in the tourism, hotel, and catering services in the third quarter of 2021 decreased sharply, with a corresponding decrease of 22.7%, 23.5%, and 21.4% quarter-on-quarter. Furthermore, these sectors persistently experienced the largest year-on-year decline compared to other industries in both employment and income in Quarter 3 of 2021 and Quarter 3 of 2020.


The gender income gap widened significantly during the pandemic. Notably, during Quarter 3 of 2021, women's income was only at 68.1% of that of men, while it was higher, at 72.2% in Quarter 2 of 2020.


IDRC report


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