The Key Factors For Employment Opportunities Of University Graduates In Vietnam

THE KEY FACTORS FOR EMPLOYMENT OPPORTUNITIES OF UNIVERSITY GRADUATES IN VIETNAM Pham Duc Long (Hanoi University of Industry) Nguyen Thuy Nga (VNU University of Education) Abstract Higher education institutions in Vietnam have been devoting resources to accreditation of higher education institutions and programs under the Education Law Regarding evaluating higher education programs, the external evaluation team is often interested in university graduates’ employment opportunities from feedback fr[.]

OF UNIVERSITY GRADUATES IN VIETNAM

Pham Duc Long

(Hanoi University of Industry)

Nguyen Thuy Nga

(VNU University of Education)

Abstract: Higher education institutions in Vietnam have been devoting resources to accreditation of higher

education institutions and programs under the Education Law Regarding evaluating higher education programs, the external evaluation team is often interested in university graduates’ employment opportunities from feedback from employers and graduates The paper presents the literature review of the factors affecting the employment opportunities of university graduates from the studies of international authors and Vietnamese researchers through

a desk-top research study Based on the study results, this paper proposes some recommendations for higher education institutions in Vietnam to make university graduates’ school-to-work transition process smoother and shorter It also hopes to contribute to the literature relating to measurement and assessment in education.

Keywords: higher education programs, employment opportunities, university graduates, school-to-work

transition.

1 INTRODUCTION

The development of higher education aims to develop highly qualified human resources, satisfy requirements of social and economic growth, and ensure national defense and security (The National Assembly, 2018) To enhance the output results of higher education institutions, the employability of graduates of all training programs needs to be identified, supervised, and compared for improvement (MOET, 2017) At which level the labor market accepts higher education institutions’ training outcomes depends on the school-to-work transition of the university graduates Not only is the transition concerned about the length of time from school leaving to the first stable or satisfactory job, but the qualitative elements of the transition to employment (Tran, 2018) Therefore, our paper attempts to fill in the gap

by clarifying the qualitative elements in the literature review

Furthermore, employment for university graduates has received more concern from society and families at developed countries and developing countries (Mgaiwa, 2021), especially in the context of the COVID pandemic As stated by United Nations, youth aged 15-24 are seeking better professional development chances In the meantime, they face difficulties in access to employment, health, education, and gender equality (United Nations, 2020) Regarding the employment section, among 1.2 billion youth aged 15-24 globally is 273 million not in Employment, Education or Training (NEED) In Vietnam, in

2020, the number of unemployed people at working age increased to 1,278,900 people, of which the number of unemployed youth went up to 89,267 people (MOLISA, 2020) About 7% of unemployed young people can be regarded as one of the most significant problems facing Vietnam’s social and

economic growth Accordingly, the Prime Minister’s promulgated the program to support the labor market development to 2030 The Prime Minister’s target is to maintain the jobless youth rate in urban areas at less than 7% In addition, the underemployment rate of rural youth should be below 6 percent One of the critical solutions to achieve the above goal is developing a mechanism and implementing programs and projects to support job creation and participation in the labor market for special labor groups, including recent university graduates (Prime Minister, 2021) However, so far too little attention has been paid to the factors and solutions for promoting university graduates’ employment opportunities which aim at actualizing Prime Minister priority for university graduates’ employment affairs since the COVID 19 pandemic spread nationwide

Because of two reasons discussed above, the article intends to systematically review theories relating

to employment opportunities to address the following question “What are the key factors affecting employment opportunities of Vietnamese university graduates?” and then presents the proposals for better graduate employability The paper is shown in the following sections: introduction, research methodology, key factors for employment opportunities, results and implications, and conclusions

2 RESEARCH METHODOLOGY

Many research methods can be selected to identify the crucial factors impacting employment chances for graduates from higher education institutions Because of being at the beginning phase of carrying out the doctoral dissertation, the authors chose “literature review as research methodology” (Snyder, 2019), of which outputs can be employed to establish a theoretical framework for further studies As classified by Torraco (2016) , who is regarded as the frontier on the “literature review” since his first article in 2005, there are five distinct goals for literature interview The paper authors adopted the 5th method objective of using literature review to solve “specific research questions about the topic reviewed in the literature” for the purpose of identifying the article’s boundaries to be focused on and its issues to be discussed

As a result of positive effects of digital transformation on education and library, many academic articles are shifted to digital publication with digital object identifier Accordingly, the papers mainly chosen to revise are the digital journals and official institutional reports such as United Nations, European Commission, Vietnamese National Assembly, Vietnamese Government, MOET and MOLISA

The authors employed an “integrative literature review” (Torraco, 2005) method, broadly used

to summarize various research papers from different research areas to generate data for specific theme literature reviews Academic publications in human resource development, employment-related economic issues, and job-concerned educational domains were preferably chosen for this article

3 UNIVERSITY GRADUATES’ EMPLOYMENT OPPORTUNITIES

Employment is the state in which someone gets paid to work for an enterprise or an organization

In Vietnam, employment is an income-generating activity that is not forbidden by law (The National Assembly, 2013) The school-to-employment transition process of young people, including university graduates, is related to capital, employability, and the labor market (Tran, 2016b; Zhang & Wang, 2020)

3.1 Capital

Capital has been popularly discussed in a vast body of politico-economic or socio-cultural studies However, a small amount of academic works is discovered in interdisciplinary research of Economics and Education The authors briefly present some typical capital terms for the employment sector related

to economics and education knowledge in the paper

3.1.1 Identity capital

Identity capital indicates what individuals contribute money in identifying “who they are” and expect to receive rich dividends in the future To become an individual possessing good identity capital,

he or she needs to establish social skills and technical skills in various areas, a wide range of the best behavior, advanced psychosocial development, and prolonged engagement in crucial professional and communal networks Identity capital can be tangible or intangible Tangible identity capital involves sociological sources such as educational certificates, member of the same job or interest, membership

of social organization for female students, a club’s member or institution’s member, as well as personal posture and appearance, useful as “passports” into other communities and institutions Besides, identity capital resources are also intangible Intangible resources involve psychological features such as personal strength, self-monitoring, self-assurance, cognitive complexity, cognitive flexibility, critical thinking competencies, and ethical reasoning competencies (CÔTÉ, 1996)

The comparative advantage of university graduate can be enhanced by possessing interdependent identity capital resources which are scarce, valued and difficult to imitate or substitute The interdependent resources of identity capital include four categories, as shown in Figure 1: “intelligence resources; personality resources; meta-skill resources; and job-specific resources” (Finch et al., 2016) Firstly, intelligence resources can be complex cognitive skills, enabling graduates to attain desirable and practical outcomes by judging, analyzing, and synthesizing Finch et al indicate a strong association between intelligence resources and employability across various jobs and situations in the previous studies Therefore, the graduates should be rich in intelligence resources to prepare themselves qualified Moreover, it can be crucial for university graduates to associate intelligence resources with other resources to make them stand out from other graduates Secondly, the relationship between personality and elements of employability has been studied in the past twenty years Conscientiousness and openness

to experiences are proved to have a stronger connection to employability than emotional stability, extraversion, and agreeableness (Finch et al., 2016) Thirdly, as Finch et al point up, meta-skill resources are not related to academic skills but also helpful in the workplace Meta-skill resources are involved

in “listening, communication, teamwork, adaptability, social sensitivity, managing relationships, time management, goal-orientation, and task completion” (Finch et al., 2016) Last but not least, job-specific resources connected to understanding, competencies, and eagerness are highly considered in recruiting and selecting employees

Figure 1: identity capital capabilities required for university graduates (Finch et al., 2016)

3.1.2 Physical capital, human capital and screening theories

To operate a business, physical capital and human capital are obligatory components Physical capital is tangible, exchangeable in the market, and represented by machines, tools, equipment, and office supplies in facilitating production Different from physical capital, human capital is shaped by changes in persons that generate capabilities and skills to enact in different ways Human capital is characterized as intangible resources which cannot be separated from its owner Human capital attributes are concerned about “education, experience, knowledge and skills” (Zelekha & Dana, 2019) Therefore, supporters of human capital theory assert that pursuing a higher level of education is a desirable way to prepare for future jobs (Dobbs et al., 2008)

Unlike human capital theory which is rooted in Neoclassical Economics, screening theory has its origin from Institutional Economics Specifically, it is costly for job applicants to participate or escape from the employment market, which is challenging and contains incomplete information about applicants However, employers use the screening theory to sort out individuals according to their characteristics (Dobbs et al., 2008) In other words, employers might divide job seekers into different groups based mainly on gender and ethnicity (innate identification) or education and marital status (signals) and then put them in various job positions This theory acts as the foundational link between fresh graduates’ education and employment in the ecosystem of education-screening-employment-wages The researchers of screening theory demonstrate that good personal education can be directly associated with strong self-regulated ability and high-quality learning Therefore, university graduates who present positive education signals can be offered competence-based jobs (Zhang & Wang, 2020) Whether in human capital theory or screening theory, university graduates are recommended to spend their school time developing professional knowledge

3.1.3 Social capital

The concept of social capital has a history of more than 100 years It was first proposed by American researcher to refer to close emotional relationships, mutual sympathy and sharing through interactions

of individuals and families in the social community (Nguyen, 2011; Fukuyama, 2001) Social capital affects many aspects of the social life of Vietnamese people Family and relatives are recognized as the most important sources of social capital, which significantly contribute to solving mental difficulties and obstacles (Nguyen & Cao, 2012) Notably, social capital through association relations such as classmates, compatriots, colleagues, volunteer organizations is recognized to have crucial values in job search, house-building, and funeral work Regarding employment, the study by Shan, 2009 is noticeable On the way to navigate and access the Canadian labor market, Chinese immigrant women who possessed high levels of social capital could keep their trained jobs while the others had to change their jobs due

to their low levels of social capital

3.2 Employability

Many scholars and practitioners have defined employability However, Moreland’s explanation of employability is accepted popularly as “a set of skills, knowledge and personal attributes that make an individual more likely to secure and be successful in their chosen occupation to the benefit of themselves, the workforce, the community, and the economy” (Moreland, 2006) To make Moreland’s definition clearer, Tran (2016) sets the question relating “skills/attributes” and summarizes the previous studies that skills/attribute is different from knowledge and graduates need to build specific skills and attributes

to enhance graduate employability the following skills: soft skills, key skills, core skills, basic skills,

generic skills, common skills, enterprise skills, essential skills, transferable skills, cross-curricular skills, cross-disciplinary skills and graduate attributes Employability skills are vital for graduates to assure and keep up work, to progress within a specific occupation, and develop competence to adapt to a new demanding job in need (Lowden et al., 2009)

Through the lens of employers (demand side), employability is viewed as work readiness (Mason

et al., 2009; European Commission, 2014), which includes ASK (attitudes, skills, and knowledge) and business understanding that new graduates have prepared to contribute significantly to enterprises’ targets after leaving schools

From the responsibility of higher education institutions (supply side), university graduates are required to possess the following transferable skills (Lowden et al., 2009, European Commission, 2014): teamwork skills, problem addressing skills, self-responsibility, business mastery, numeracy and literacy for the recruitment position, ICT mastery, communicative abilities, creative thinking ability, leadership skills, positive attitudes and viewpoints

From educational quality assurance, graduate employability is placed high in most universities’ policies since thirty universities from ten countries in South East Asia have followed the AUN-QA in implementing their quality assurance systems The AUN quality assurance framework urges universities

to collaborate closely with employers to develop curricula, revise the syllabus, and enhance graduate employment which is directly related to outcomes standards (Tran, 2016a) However, a cooperation culture between higher education institutions and enterprises is blurred in a centralized country such

as Vietnam (Pham, 2019; Nguyen & Ta, 2018) The theory of educational quality assurance shows that the enterprise is a definitive stakeholder who participates in higher education by possessing power, urgency, and legitimacy but in Vietnamese reality, the enterprise acts as the minimal power member without urgency and insufficient legitimacy towards developing training programs and governing the higher education institutions’ quality Therefore, their engagements are considerably dependent on higher education institutions In light of educational quality assurance, university graduates’ employment has much affected by the relationship between universities and enterprises and Vietnamese cultural features

In the Vietnamese context, academic works concerning graduate employability are published by some scholars such as Tran Thi Tuyet and Tran Le Huu Nghia Tran Thi Tuyet’s research interests focus

on graduate employability in relationship with university-enterprise collaboration Tran Le Huu Nghia spends his time discovering skills gaps and developing employability skills in Vietnamese universities The researchers reveal the main factors which explain Vietnamese graduates’ quality insufficiency (Tran

T T, 2014; Tran L H N., 2018) The student or employee-related factors consist of uncomprehensive and outdated professional knowledge, inexperience in applying theoretical knowledge to practical working contexts, limited foreign language skills, poor work experience, and passivity in planning and navigating their career The labor market and university-related factors involve the theoretical university curriculum and dramatic changes in the labor market

In short, employability can be divided into two primary categories: employment-centered and competence-centered The first approach focuses on capabilities to get the first job, keep the current job and switch a new job if required The second approach concerns competencies that university students are expected to shape during school time to meet employers’ requirement

3.3 Labor market

Labor market can affect job seekers through socioeconomic development, social position and transformation of occupation employment which are clearly indicated in growth employment theory, theory of social mobility and theory of structural transformation of occupation employment

Growth employment theory identifies the relationship between socioeconomic development and work transition The supporters of growth employment theory affirm that there is a strong connection between economic growth and employment Similarly, economic environment is also critical factor for university graduates’ jobs The education industry is recognized as one sector in the general economy which means that the general education level in a region will also be changed by that region’s economic wealth (Zhang & Wang, 2020) Furthermore, the Friedman-Phelps natural rate hypothesis, which contradicts the half-century-ago-accepted Phillips Curve, ascertains the relationship between economic progress and employment adjustment The Friedman-Phelps approach shows a connection between inflation and unemployment, equivalent to the association between economic evolvement and employment As described by Friedman-Phelps, if inflation is low, unemployment is low, and vice versa (Gordon, 2018)

Social mobility is related to the change of individuals and households into social positions Social mobility is involved in intra-generational mobility and intergenerational mobility Intra-generational mobility refers to an individual or household’s position modification in their lifetime Intergenerational mobility is concerned about the position transition of an individual or a family compared to the previous generations Furthermore, social mobility can be measured in views of education, employment, and income (Nguyen & Nguyen, 2020) It is identified that the social position movement is possibly higher

or lower under the perspective of employment For example, when an enterprise owner fails in business and goes bankrupt, his social standing does not likely keep the same According to Zhang and Wang, social mobility is promoted in China due to open interpersonal relationships and career development systems which result from applying the mutual choice employment model that differentiates the previous model of national central allocation Consequently, job seekers have more opportunities and freedom to participate in the work market (Zhang & Wang, 2020) In Vietnam, employment mobility of young people occurred during the ten years of 2004-2014 The youth tended to transit more frequently from self-employment to hired employment as compared with older ones Additionally, regarding intra-generation mobility, pursuing a higher level of education could bring more competitive advantages for highly educated heads to access skilled or non-manual jobs Similarly, urban and King people were more eligible to get promoted in employment than rural people and ethnic minority people due to higher intergenerational mobility in urban areas (Nguyen & Nguyen, 2020)

Structural transformation of occupation employment shows that significant growth of economics might tackle joblessness At the same time, it causes a shortage of job positions and employment obstacles in the job market For example, the jobs are not supplied in the region in which the job seekers expect to employ or job finders’ background is not suitable for job vacancies’ requirement of competencies (Zhang & Wang, 2020) The World Bank shows that structural transformation happened

in two closely relating shifts between 1990 and 2008 in Vietnam The first shift is the transition from government-owned employment to the private one The second shift originates from household-based business transformation into formal registered firms that mainly focus on the manufacturing sector Due

to these shifts, GPD per capita increased three times, and poverty decreased incredibly Over two decades,

employment share in agriculture fell from 70 percent to 54 percent, while manufacturing employment share reached 14 percent, and service employment share accounted for more than 30 percent It was supportive evidence about the fact that the laborer moved from lower into higher productivity activities under the effect of structural transformation of production and employment (Mc Millan et al., 2017)

4 RESULTS AND IMPLICATIONS

From previous studies and literature, a model of factors for employment is summarized as follows:

Table 1: A summary of factors for employment

1.

Internal

factors

Innate identification and screening signals

Identity capital

(intelligence resources; personality resources; meta-skill resources; and

job-specific resources; professional knowledge; career positioning skills;

theoretical knowledge’s application into practical working contexts; foreign

language skills; and work experience)

Tran T T, 2014 Finch et al., 2016; Tran L H N., 2018

Social capital (trust, commitment)

Shan, 2009 Nguyen and Cao, 2012 Work readiness/employment-centered employability

(attitudes, skills, knowledge and business understanding)

Mason et all., 2009; European Commission, 2014 Transferable skills/competence-centered employability

(teamwork skills, problem addressing skills, self-responsibility, business

mastery, numeracy and literacy for the recruitment position, ICT mastery,

communicative abilities, creative thinking ability, leadership skills, positive

attitudes and viewpoints)

Lowden et al., 2009; European Commission, 2014;

2.

External

Pham, 2019; Tran, 2016a

2.

External

factors

Labor market

(socioeconomic development, social mobility, and structural transformation

of occupation employment)

Mc Millan et al., 2017 Gordon, 2018; Tran L H N., 2018 Zhang and Wang, 2020;

Nguyen and Nguyen, 2020;

After reviewing the previous studies relating to employment opportunities of job applicants in general and university graduates in particular, the authors give some implications to promote the transition from school to workplace: widely advertising the competitive advantage of higher education; flexibly transforming employability skills in training programs; and diversifying work experience activities for students; and promoting the roles of stakeholders

Firstly, the benefits of higher education should be reinforced Entrance into higher education has been proved to be highly effective in helping university graduates get more considerable benefits than

their colleagues without finishing higher education (Dobbs et al., 2008; Nguyen et al., 2019; Zhang

& Wang, 2020; and Nguyen & Nguyen, 2020) However, publicizing higher education institutions’ output results seems not to be widely implemented to help students and their families believe in higher education’s missions in maximizing the value of lifelong earnings or assist employers in attracting and recruiting the graduating students It is suggested that the higher education institutions should advertise the employment reports of new graduates on their institutions’ websites or crucial social networks such

as alumni associations or associations of former teachers and staff

Secondly, higher education institutions should be flexible in transforming employability skills in their curriculum Employability skills can be enhanced for students in three ways (Mason et al., 2009) Firstly, higher education institutions can embed the employability skills in courses Secondly, they can provide separate skills courses which are much more productive in traditional academic programs Lastly, the universities can make huge efforts to promote employability skills by utilizing a combination

of stand-alone and embedded teaching methods

Thirdly, higher education institutions are encouraged to improve and diversify the students’ work experience activities which can supply students with tremendous opportunities to develop self-confidence and personal effectiveness in a collaborative teamwork environment Work experience programs need to be designed and organized to help build the students’ identity capital which is viewed

as initial competencies to support them to recognize job prospects (Lowden et al., 2009) Therefore, the new graduates are advised to deliver their work experience and what they have obtained when they are

on the pathways to impress recruiters

Finally, stakeholders’ participation should be strengthened A loose engagement between university and enterprise (Tran, 2016a; Bennett, 2019; Pham, 2019) is indicated as one factor in making the university graduates’ transition to employment painful Higher education institutions, industry, and students must share the mutual responsibility for employability development to address the issue In the context of the growing number of input students and dynamic market-driven economy, universities will not successfully provide and prepare students to find and secure employment if employers, students, and their families do not proactively work with the universities University-industry cooperation enhancement is considered an effective long-term solution for university students to apply theoretical knowledge to practical working contexts and achieve success in career development

5 CONCLUSION

In summary, the paper discusses some aspects of employment opportunities of university graduates

It is noticeable that capital, employability, and the labor market can affect the success of the career development of each individual Firstly, capital is the crucial term in human resource development in which theories of identity capital, human capital, social capital, and screening theory are much related

to employment Secondly, employability has received growing concerns from international scholars, but it seems not to be fully perceived and widely implemented by higher education institutions Future researches can focus on employment-centered or competence-centered employability Finally, with its invisible hand, the labor market can intervene job opportunities of university leavers through the strength of social and economic development, job seekers’ social position, and transition in the occupation structure After reviewing the previous studies, the authors summarize a table of factors affecting employment opportunities of university graduates and propose feasible solutions to enhance their school-to-work transition

The paper has some following limitations Due to conducting the literature review to develop

a conceptual framework for future studies, the article has not presented data collection and analysis to examine the theoretical basis and illustrate the specific findings The authors will continue to conduct further research to discover factors of the students’ employment opportunities at a Vietnamese university

in the light of assessment and measurement in higher education The second shortcoming is roles of the stakeholders in enhancing the employability skills for university graduates have not been investigated Therefore, the coming papers are advised to fill in the gap The authors’ efforts in the incoming time are hoped to act as a practical value reference for fostering the quality of the Vietnamese labor force to partially contribute to the national target of becoming a high-middle-income developed country by 2030 and turning

it into a high-income advanced nation before 2045

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