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Increase overtime, businesses stop recruiting workers?

The National Assembly Standing Committee has just approved the content increase overtime in all occupations for 2 years, effective from today (1/4). Many people wonder whether increasing overtime will cause businesses to stop hiring more workers, affecting the opportunities of those who are looking for work?

From Tet until now, recruitment signs are still hanging in front of the factory of Johnson Health Technology Co., Ltd. The salary, bonus, and probationary regimes are much easier than in previous years, but the factory still cannot recruit enough 700 workers, and even the donation of house money and brokerage wages cannot attract workers.

“We have to support travel and food expenses. Currently facing many difficulties, for technical positions it is even more difficult because it requires highly skilled labor,” said Ms. Nguyen Thi Hang, Head of Operations Department. Johnson Health Technology Co., Ltd., said.

Increase overtime, businesses stop recruiting workers?  - Photo 1.

The economy is entering the recovery phase, more orders are coming, so businesses still promote to recruit new workers. (Illustration image – Photo: Investment Newspaper)

Labor shortage is a common situation of factories and industrial parks, especially after the outbreaks of the epidemic in 2021 and is becoming more and more difficult now. Regulations on increasing overtime hours are expected to help businesses solve immediate difficulties in terms of labor.

“The amount of work backlog is so much that the company’s current demand is still very high, even if it works overtime, it still needs to recruit more workers,” said Ms. Tran Thi Thanh Hieu, Vinahan Bac Giang Joint Stock Company.

In the long term, businesses said they also do not want to mobilize employees to work too much, because the cost of paying wages is high but labor productivity is not equal to working hours.

In fact, most businesses only allow employees to work a maximum of 300 hours per year to handle urgent orders. The recruitment of new workers is still conducted in parallel to meet the needs of production expansion of enterprises.

“It’s not that we don’t hire more workers because of the increase in overtime hours, but because of the growth rate of the business. We always have to invest, rebuild, change technology and also need to have a labor source to make it work. operating that technology.A line is not only located at that scale but will expand further, so recruiting to train and expand production is natural. We stop recruiting,” said Mr. Nguyen Duc Trung, Deputy Director of HBT Phu Lo Precision Mechanic Joint Stock Company, Soc Son, Hanoi.

The economy is entering the recovery phase, more orders are coming, so businesses still promote to recruit new workers. Therefore, it is not the case that increasing overtime hours reduces the employment opportunities of new workers.

According to forecasts, when the country fully opens the market still needs more than 1 million new jobs. Recently, the Government has recently deducted more than VND 6,600 billion from the budget to attract workers to work in 24 key provinces and cities.

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