Vietnam H1 job creation slumps 17 pct yr/yr - paper

HANOI, June 19 - Vietnam created 650,000 jobs in the first six months of the year, 17 percent fewer than in the first half of last year, a state-run newspaper reported on Friday. The country is facing "a wide range of challenges in generating employment while the number of workers losing jobs has increased sharply", Thanh Nien Daily said, quoting Deputy Minister of Labour, Invalids and Social Affairs Dam Huu Dac.

The ministry has said it expects unemployment to rise by 300,000 people this year, and 10,000 Vietnamese working abroad are likely to return home.

Economists say official unemployment figures may not reflect the full impact of the economic slowdown because they do not capture casual, seasonal or other unregistered workers. Underemployment is more common than unemployment, the World Bank said in a report this month.

The ministry reported to parliament last week that it expected 1.45 million jobs to be created this year if economic growth reached the government's target of 5 percent. The initial target had been 1.7 million.