Relationship between Economic Growth and Employment in Vietnam

Abstract

The paper examines the relationship between employment and economic growth during the period 1991–2012 in Vietnam and obtains forecasts for employment from 2013 to 2020, using theories of production function for establishment of econometric models. The results show that the employment elasticities of economic growth are -0.49; 0.55 and 0.66 for agriculture, manufacturing and service sectors respectively and 1.71 for Vietnamese economy as a whole in the period. The results also indicate that an annual growth rate of 6% - 7% can help create from 55.322 to 56.243 million jobs by 2015 and from 61.739 – 64.519 million ones by 2020. Additionally, the research offers several important policy recommendations to promote economic growth and job creation in Vietnam in the next period.