A labor ministry official in Laos highlights that foreign companies do not hire local workers due to a lack of skills, attributed to inadequate training by the government. This issue is exacerbated by foreign firms primarily exploiting resources while avoiding local employment. Calls for action have emerged, but challenges such as corruption and insufficient compensation hinder progress. The current labor landscape reflects a significant gap that must be addressed for improved domestic employment.
In Laos, a labor ministry official has attributed the reluctance of foreign companies to hire local workers to a lack of necessary skills among Lao employees. This situation underscores a broader issue of insufficient training provided to the local workforce, leading businesses mainly from China and Vietnam to bring in their own staff. Amidst lax oversight, these foreign firms are primarily focused on exploiting the country’s natural resources without due consideration for environmental and community impacts.
During an official visit to Houaphan province, Sounthone Xayachack, vice president of the Lao National Assembly, called for immediate action to address the shortage of workers and prevent companies from importing foreign labor. The Lao government anticipates providing only about 26,000 jobs for domestic workers in 2024, while the World Bank reported that the national labor force was approximately 3.5 million, with around 42,000 people unemployed. A recent report indicated an urgent need for 153,315 positions from 2,600 companies in Laos.
An official from the Department of Labor and Social Welfare noted that foreign firms are disinterested in hiring Lao workers due to their perceived lack of skills and experience. “They don’t meet the requirements of the companies’ needs,” the official stated, indicating a significant disparity between job expectations and local capabilities. The official also asserted that the government lacks sufficient funds to provide the necessary training for Lao workers.
Another provincial official stated that it would be “impossible” to stop foreign companies from importing workers, reinforcing the notion that local workers often do not meet the skill requirements set by these firms. While the labor shortage in Houaphan was acknowledged, there was ambiguity whether it constituted a general lack of workers or a shortage of skilled laborers. Many Lao citizens are reportedly hesitant to work for foreign companies, primarily due to inadequate compensation and competition from Vietnamese workers.
Further complications arise from reports of local officials accepting bribes from foreign companies to overlook legal employment regulations. Concerns have been raised about corruption hindering inspections and regulatory enforcement. A Houaphan resident confirmed that numerous migrant workers from foreign-investor nations are employed in the province, while many skilled Lao workers relocate to other areas for better opportunities.
Amid these challenges, there are reports that even the Lao government resorts to hiring foreign workers for certain projects. Observations indicate that the influx of foreign labor is tied to broader systemic issues, including official complacency and economic disparity, which must be addressed to improve the local workforce’s employability.
The ongoing reliance of foreign firms on non-Lao labor underscores a significant skills gap in the domestic workforce. Concerns surrounding the lack of training, combined with corruption and inadequate compensation, contribute to an unfavorable employment landscape for local workers. Addressing these issues is imperative for the Lao government, not only to enhance job opportunities for its citizens but also to ensure sustainable economic growth in the presence of foreign investment.
Original Source: www.rfa.org
