In Laos, a labor official revealed that foreign companies prefer to hire migrant workers over local labor due to a lack of skills among Lao workers. Despite calls for solutions to increase local employment, the government faces challenges including inadequate training budgets and corruption. Many local workers avoid foreign jobs due to lower pay and fear of competition from foreign nationals. The situation requires urgent reforms in vocational training and local employment conditions.
A labor ministry official in Laos addressed concerns regarding foreign companies hiring their own workers rather than local employees. The official attributed this situation to the lack of necessary training for domestic workers, which prevents them from meeting the job requirements set by these companies. Many foreign firms, particularly from China and Vietnam, exploit Laos for resources with little regard for local labor.
On March 6, Sounthone Xayachack, the vice president of the Lao National Assembly, urged local authorities in Houaphan to resolve worker shortages and restrict foreign companies from importing labor. She highlighted that the Lao government could only offer 26,000 jobs in 2024 against an unemployment rate of approximately 42,000 individuals within a labor force of 3.5 million. A 2023 report indicated that over 2,600 companies were actively seeking to fill more than 153,000 positions in Laos.
An official from the Department of Labor and Social Welfare remarked that foreign businesses prefer to bypass local hires, stating that “the majority of Lao workers have no skills or experience”. This reflects an ongoing issue where the government lacks sufficient budget allocations for training initiatives. A local official acknowledged the challenge in preventing foreign firms from importing labor, citing a disparity in skill among domestic workers.
Despite a reported worker shortage, it remains uncertain if this refers to a deficiency in numbers or skills. Many Lao workers opt out of positions in foreign companies due to inadequate compensation and competition from workers from Vietnam. Officials estimate widespread foreign investment in the region has not translated into local employment opportunities.
Moreover, observers have pointed to corruption where local officials allegedly accept bribes to overlook the employment of foreign workers without proper permits, further complicating the issue. A Houaphan resident mentioned that local skills were lacking as many Lao workers seek employment in other provinces, while the government has also resorted to hiring foreign labor.
This complex labor situation in Laos underscores the critical need for improved training programs to enhance the skills of local workers. Without such reforms, reliance on foreign labor is expected to continue, as the demand for skilled workers remains unmet within the local population.
In conclusion, Laos faces significant challenges regarding labor shortages primarily due to the lack of skills among domestic workers, which foreign companies cite as a reason for hiring migrant labor. The government’s inability to adequately train its workforce, coupled with systemic corruption and inadequate compensation, exacerbates the situation. To address these issues, there is an urgent need for reforms focusing on vocational training and better employment conditions for local workers.
Original Source: www.rfa.org
