Unemployed grads could be resource for new startups

While some analysts are pessimistic about the prediction that 200,000 university graduates will remain jobless in 2017, others believe that graduates could provide a valuable resource for startups.



MOLISA has predicted that the number of university graduates to stay redundant in 2017 would be higher than that in 2016, about 200,000, which has once again raised the debate about how to deal with the high unemployment rate. 

The unemployment figure has been blamed on the low quality of the university education system which graduates students who are unprepared to work or fill requirements set by employers.

However, an analyst pointed out that if all engineering and bachelor’s degree graduates choose to become salaried employees, there won’t be a startup movement. Therefore, he still can see a positive side to the unemployment rate as this would help encourage startups.

In August 2016, Nguyen Thanh Tu, who was then a redundant software programmer for five years, received VND1 billion worth of investment capital from Facebook for his startup project on a mobile game.

The startup project originated from a game he created in his free time, when he was redundant. And the game later helped him earn $5,000 a month.

Not all bachelor’s and master’s degree graduates can succeed like Tu. However, if Tu had not been redundant, he would have, like many other software programmers, taken a job ar a software firm and received monthly wage.

The analyst, who is a psychologist, said that unemployment will put pressure on youth and force them to become more active. Once it is difficult to find jobs in their field, university graduates would be more motivated to start up business of their own.

University graduates, who have a high education level, would try to do business of their own if they are redundant, instead of continuing to try to find salaried jobs which are becoming scarcer.

Agreeing with the view, a high school teacher in Hanoi said the situation would be serious if most unemployed workers were untrained and unskilled. If so, the national economy would be stagnant which would lead to social problems.

Meanwhile, bachelor’s and master’s degree graduates would be able to create business new jobs for others.

He noted that the majority of unemployed bachelor’s degree graduates are from rural areas who don’t want to return to their home village after graduation.

Thanh Mai / vietnamnet