HCMC – The service sector has been heavily hit by Covid-19 with 72% of the workforce directly affected and up to 156,900 employees involved in accommodation and catering activities made redundant in quarter two.
According to the General Statistics Office, the number of people losing jobs saw a sharp increase last quarter, while incomes of employees in the field took a plunge.
In particular, incomes of accommodation and catering staff dropped by 18.3%, only after the sector of arts, recreation and entertainment (19.2%).
Many businesses said that while it was hard for them to employ new staff, they now have to lay many off as there are not many guests to serve.
Although many tourist sites have now been reopened, the number of guests is so limited that there are not enough jobs for hotel, resort and restaurant staff.
Phan Xuan Anh, owner of a resort in Hue and another one in Tien Giang, said that he has had to make half of the staff in Hue redundant.
According to Anh, occupancy rates in Hue are improving but are still not enough to have staff back to work. Things are better in Tien Giang as there are more staff resuming work.
“We hope that occupancy rates will rise so that staff can get back to work as they are still unable to find new jobs,” Anh said.
The situation is worse in localities which rely on international markets. For instance, as just a few hotels and resorts have resumed operation, a majority of employees could not have their jobs back.
Unemployment happens to not only low-level employees but also managerial-level ones, according to Hoang Van Vinh, chairman of the Nha Trang-Khanh Hoa Tourism Association.
By Dao Loan