Foreign companies in Laos bypass local workers due to perceived skill deficiencies, as reported by a labor ministry official. The government struggles to provide adequate training, leading to significant unemployment despite a large labor force. Corruption and bribery among local officials further complicate the hiring of domestic workers, exacerbating reliance on foreign employees.
In Laos, foreign companies hesitate to employ domestic workers due to a perceived lack of skills among the local workforce, according to a labor ministry official. This reflects a broader issue of inadequate training provided by the government, which has not prepared workers to meet foreign company standards. The situation in Houaphan province shows that the oversight of foreign investment is weak, with many firms exploiting resources while ignoring environmental impacts.
The Lao government is under pressure to address worker shortages. During a recent visit to Houaphan, the vice president of the Lao National Assembly highlighted the need to limit foreign firms’ ability to hire overseas labor, noting that only about 26,000 jobs would be available for domestic workers in 2024. Despite an estimated labor force of 3.5 million, the unemployment rate remains significant.
A report indicated that over 2,600 companies in Laos aim to fill over 153,000 positions. Despite this demand, foreign firms predominantly prefer to import labor, citing that local workers lack necessary skills and experience. An anonymous labor department representative expressed concern, stating that government funding for worker training is insufficient.
Provincial officials confirmed that many Lao workers do not meet foreign firms’ qualifications, making it challenging to hinder the import of foreign labor. Moreover, many workers are deterred by lower wages offered by foreign firms and the fear of displacement by migrant workers from neighboring countries.
Bribery also complicates the hiring dynamics, as some local officials allegedly receive payments to overlook foreign workers’ employment without permits. This corruption further diminishes the chances for local workers, many of whom are migrating to other provinces in search of better job opportunities. Acknowledging the skills gap, a Houaphan resident noted that even government projects often rely on foreign workers, emphasizing the depth of the issue.
The labor market in Laos is under strain, exacerbated by the influx of foreign firms that prefer to hire overseas workers due to local skill deficiencies. Despite a considerable domestic labor force and job openings, insufficient training and regulatory oversights lead to a reliance on foreign labor. Addressing these issues requires improved workforce development and stricter enforcement of labor standards.
Original Source: www.rfa.org
