Projects that may not achieve optimal financial efficiency can still be considered for investment when they bring better socio-economic efficiency than other projects. To obtain the above assessments, it is necessary to go through a system of indicators, requiring a lot of in-depth analysis of the most appropriate assessment methods and evaluation processes.
Third, there must be liquidity.
Liquidity is understood as the ability to easily convert into cash to facilitate payment and spending.
The purpose of the Unemployment Insurance Fund is to meet the payments for the regimes that employees receive when they are unemployed at any time. Therefore, the fund must always be ready to pay, and the idle part of the fund when invested must also be easily recovered when necessary. This is also a special point between normal investment and investment from the Unemployment Insurance Fund. Therefore, the Unemployment Insurance Fund can only invest in highly liquid assets and investment assets with regular and stable income.
Maybe you are interested!
-
State Management Experience on Business Activities of Non-Life Insurance Enterprises of Some Countries -
![Experience in Bank Marketing Activities in Some Countries [4] & [24]](https://tailieuthamkhao.com/en/uploads/2024/08/22/experience-in-bank-marketing-activities-in-some-countries-4-24-120x90.jpg)
Experience in Bank Marketing Activities in Some Countries [4] & [24] -
Experience in Limiting Risks in Banking Credit Activities of Some Countries in the World -
Experience in Improving Competitiveness of Some Countries and Localities in Vietnam -
Experience of Some Countries in the Region in Improving the Quality of State Administrative Civil Servants
The main investment method of the Unemployment Insurance Fund is to lend to banks and receive monthly interest, but in the future, it is possible to consider investing the Unemployment Insurance Fund in large national projects in the form of equity capital contribution, joint ventures in current key industries such as electronics, telecommunications, mining... However, the investment portfolio must be carefully considered and evaluated by investment experts.
Fourth, must ensure social benefits.
The investment of the Unemployment Insurance Fund needs to consider social factors, especially the unemployment issue, creating more jobs for workers, improving the living environment and working environment for workers... If this can be done, it will not only have a positive impact on society but also directly affect the operation of the fund, reducing the burden of payment of the fund, the sustainability of the fund will be increasingly improved. The form of investment can consider investing the fund in civil works, housing for low-income people, participating in employment settlement funds, funds to support labor exporters...
- State management of unemployment insurance must contribute to job creation and unemployment reduction.
The combination of cash TCTN and employment support policies is the most effective mechanism to protect unemployed people and their families from poverty and help them find jobs quickly. All countries provide
Regular employment services, necessary for effective job search such as job counseling, job fairs, resume writing support, providing labor market information, establishing a job database, travel and transportation allowances... In addition, it is possible to organize activities to encourage unemployed people to participate in vocational skills training courses, even when they are employed, to maintain that job or find a new job with a higher salary or better benefits, and can extend the vocational training support period if the vocational training period exceeds the TCTN period.
Thus, in terms of policy, it is necessary to constantly survey and evaluate the implementation situation in order to propose solutions to continuously improve policies to ensure the rights of workers, reduce unemployment rates and the consequences it brings to the lowest level.
- The implementation organization system must operate effectively.
A reasonable unemployment insurance regime combined with labor market measures will contribute positively to reducing the impact of unemployment on the insured. Unemployment insurance can be used as part of an employment strategy to give the unemployed the opportunity to find new jobs where they think they have prospects. The combination of unemployment insurance with labor market measures will aim to improve the quality of the workforce through vocational training and retraining, reducing the number of low-skilled workers in the medium term. This combination will also have the potential to create a safe environment for workers, thus making it easier to accept technological innovation and structural changes as is currently being done for state-owned enterprises. The organization and implementation of the policy should aim to simplify administrative procedures, reduce the number of trips for workers, and apply information technology in the implementation process to increase efficiency.
- Employee satisfaction with current unemployment insurance policy
Employee satisfaction with unemployment insurance policies is reflected in aspects such as correct, sufficient, timely payment, and simple payment procedures... from the state management agencies on unemployment insurance. This is an important criterion to evaluate the effectiveness of state management on unemployment insurance.
Unemployment insurance policy must ensure fairness among participants. This is reflected in contributions and benefits. The level of unemployment insurance benefits must be truly effective in ensuring partial compensation of income so that the unemployed can maintain a normal life, but must also ensure
Encourage workers to proactively seek jobs and not rely on government policies. The unemployment insurance fund must pay to the right people…
One of the measures to help the unemployed return to the labor market quickly is to create conditions for them to learn a trade. Vocational training is very important, it can be considered a key step to create opportunities for the unemployed to change jobs, thereby having the opportunity to return to the labor market soon, create income, and stabilize their lives. Vocational training support for the unemployed aims to equip and improve the professional qualifications of workers to meet the needs of employers. This support must be ensured at a certain level, the level of support needs to be flexibly regulated for each group of subjects so that workers can easily access the regime, the support period is not too long so that workers can quickly return to the labor market. However, there needs to be reasonable support so that the unemployed are jointly responsible, both meeting the vocational training requirements of the unemployed, ensuring safety and developing the unemployment insurance fund.
2.2.3 Factors affecting the management of social insurance
Because social insurance is multi-purpose and interdisciplinary, there are many factors affecting the management of social insurance. Some of the following factors can be mentioned:
One is the level of economic development.
The level of economic development is the material and technical premise for improving the effectiveness of state management of unemployment insurance. It is both a condition and a result of implementing social policies. If a country has a developed economic level, it will have material conditions to make it easier to ensure social security, including unemployment insurance. The level of economic development is the premise for improving the effectiveness of state management of unemployment insurance through the application of science and technology in management, making the most of information technology to manage the unemployed.
The level of economic development of our country is still low, the macro balance is often not stable, growth is still inclined to breadth, the quality of human resources is still limited, the level of science and technology is still weak... The integration of the international economy in both breadth and depth has increased the competitive pressure of enterprises. If enterprises are not competitive, they will go bankrupt, increasing the number of unemployed people. Globalization also causes the loss of many traditional occupations, while also forming many new occupations... This also leads to an increase in the number of unemployed people. Therefore, it can be said that this is a factor that directly affects the State management of unemployment insurance.
Second, coverage
The goal of social insurance policy makers is to expand the coverage of the policy further. Coverage is a factor that strongly affects the effectiveness of state management of social insurance. Because it is related to the management object, revenue, expenditure level, organizational structure of the management apparatus, inspection and supervision capabilities... In the early stages, the social insurance policy was only for the group of employees,
Employers are likely to lose their jobs as well as be at risk of dissolution, bankruptcy, and cessation of production and business. Thus, the subjects participating in unemployment insurance are naturally "limited" in terms of both employees and employers. This is due to concerns about the safety of the fund; doubts about the high risk and unemployment of vulnerable groups of employees as well as the sustainability of small units. However, this has created inequality between large and small enterprises, between those working under seasonal contracts, those working under contracts of more than 12 months and the group of workers working in the informal sector. Therefore, when the policy has been implemented for a few years, increasing the coverage of the policy is very necessary. Expanding the subjects participating in unemployment insurance in a way that is convenient for employees, employers as well as the organization and implementation of the unemployment insurance policy in accordance with the actual conditions at each time.
Third, the business cycle.
Business cycle is one of the causes of cyclical unemployment. Thus, business cycle is one of the factors affecting the state management of unemployment insurance. Changes in business cycle will lead to changes in labor supply and demand in the labor market. Workers in production and business sectors that are not suitable for the market will become unemployed. The more unemployed workers increase and the more fluctuations there are, the more difficult management becomes. In addition to managing beneficiaries of unemployment insurance, it is also necessary to provide job counseling, training and retraining of workers to meet market demands. Unemployed workers who want to return to the labor market in new occupations require retraining to have professional qualifications to meet the new requirements of the job, while this training takes time. Long training time will make workers slow to find jobs, affecting unemployment insurance and of course affecting the state management of unemployment insurance.
Fourth, the development of the labor market
The development of the labor market directly affects labor and employment. If the labor market develops, it will help reduce unemployment, if the development level of the labor market is not high, it will increase the unemployment rate. The development of the labor market will contribute to regulating labor between places with surplus labor and places with shortage of labor and help workers easily find jobs suitable to their professional qualifications.
Activities to support labor market development such as developing job exchanges, building a database of market data: labor supply, labor demand, unemployment status... will create favorable conditions for unemployment insurance in general and state management of unemployment insurance in particular.
Five is, the customs of the people
This is a factor that has a significant impact on the management of unemployment insurance. It affects the working style, ideology, viewpoints, and lifestyle of employees in production and business activities. These factors have a significant impact on the unemployment rate. In reality, regions with developed socio-economic conditions, high living standards, and high education levels often have higher demands for jobs and income from those jobs, which often leads to the consequence of increasing unemployment rates... Unemployment changes will inevitably lead to more difficult and complicated management of unemployment insurance.
The customs, habits, and culture of workers affect their behavior and culture, thereby affecting the State management of unemployment insurance. Many residents have a point of view that is not interested in state policies, short-term thinking but not long-term benefits... They have not participated in paying unemployment insurance, or intentionally are not transparent, colluding to take advantage of unemployment insurance... All of these actions have a significant impact on the State management of unemployment insurance.
The bottom line is, the awareness of compliance with the policy of social insurance participants.
The awareness of compliance with the law on unemployment insurance of employers and employees is a factor that directly affects the effectiveness and efficiency of state management of unemployment insurance. If employers and employees are aware of
If the legal policies are well complied with, the effectiveness and efficiency of state management of social insurance will be improved and vice versa, if not well complied with, the effectiveness and efficiency of state management of social insurance will be reduced.
Seven, the social insurance management model
The social insurance management model is a factor that directly affects and determines the effectiveness and efficiency of state management of social insurance. In countries with a centralized management model, the consistency in management is often enhanced, while in countries with a specialized management model, management efficiency is often high. However, the choice of which management model depends largely on the political, economic and social characteristics of each country.
2.3 Experience of some countries in managing social insurance
2.3.1 Experience of some countries
2.3.1.1 Korean experience
The employment insurance policy system in Korea is considered a comprehensive policy system that includes labor market policy and social insurance. The employment insurance policy not only performs the traditional function of providing unemployment insurance to the unemployed, but also performs the function of promoting industrial restructuring, preventing unemployment, promoting employment security activities to increase employment, and promoting vocational skills development activities for workers.
The Ministry of Labor is responsible for guiding the implementation of this employment insurance policy system. The Korea Labor Welfare Service (under the Ministry of Labor) implements and collects insurance. Local labor offices pay employment insurance (through personal accounts). The employment insurance policy system in Korea consists of three main components: the employment guarantee program, the vocational skills development program, and the TCTN. The responsibility for paying employment insurance contributions is determined for employers and employees depending on each type of activity.
One of the fundamental issues in implementing employment insurance policies in general and unemployment insurance in particular is the level of compliance, especially in small businesses and for daily wage workers. Currently, the compliance rate in Korea
is known to be 73.4%. In the Korean labor market, workers are generally classified into permanent workers, temporary workers, and daily workers. Temporary workers may work for a fixed or indefinite period. Enterprises use temporary workers to adjust the number of workers on the payroll because this type of worker can be fired and does not receive a lump sum benefit. Daily wage workers are hired for a fixed period and are automatically removed from the payroll. Some employers are reluctant to notify the above two groups of workers for social insurance purposes. Weaknesses in management are mainly due to the lack of adequate regulations for employers to maintain records of this group of workers.
Another obstacle to the implementation of the employment insurance policy and the unemployment insurance program is the reduced quality of jobs due to low security, which reduces the incentive for enterprises to train their workers and creates slow progress of employment services in building information and services on the labor market, for example, job counseling services.
2.3.1.2 Thailand's experience
The Asian financial crisis in 1997 caused the Thai economy to stagnate with a very high unemployment rate. Based on the actual situation, Thailand has built and implemented an unemployment insurance program for workers. The unemployment insurance system in Thailand has the following characteristics:
- Regarding subjects and scope of application: Subjects participating in unemployment insurance are subjects participating in social insurance, including all enterprises employing 1 employee or more.
- Regarding contribution level: Unemployment insurance contributions are collected since January 1, 2004; Employers and employees contribute the same amount to the Unemployment Insurance Fund every month, which is 0.5% of salary, the State contributes 0.25% of salary fund;
- Regarding the conditions for receiving unemployment insurance: Having paid unemployment insurance for at least 6 months within 15 months before becoming unemployed; Registering unemployment with the State employment service agency; Being able to work and ready to work when introduced to a suitable job; Participating in the introduced vocational training courses; Must present to the employment service agency at least once a month; Being unemployed for reasons other than the following:
due to failure to complete assigned tasks, committing a crime against the employer, intentionally causing damage to the employer, seriously violating the regulations and labor discipline of the employer, being absent from work for 7 consecutive days without a valid reason, causing serious damage to the employer due to being absent from work, being imprisoned, not receiving monthly pension; receiving unemployment insurance after 8 days from the date of losing the job for the last employer.
- Regarding unemployment insurance benefits: Employees who have paid unemployment insurance and are fired will receive 50% of their salary as the basis for paying unemployment insurance for a period not exceeding 180 days within 1 year; Employees who have paid unemployment insurance and voluntarily quit their jobs will receive 30% of their salary as the basis for paying unemployment insurance for a period not exceeding 90 days within 1 year and the total number of days of receiving unemployment insurance due to voluntary unemployment will not exceed 180 days.
- Unemployment regulations
The Thai government stipulates that unemployment is not due to reasons such as failure to complete assigned tasks, committing a crime against the employer, intentionally causing damage to the employer, seriously violating the regulations and labor discipline of the employer, missing 7 consecutive days of work without a valid reason, causing serious damage to the employer due to missing work, being imprisoned, not receiving monthly pension; unemployment insurance is entitled after 8 days from the date of losing the job for the last employer.
- Regarding the social insurance management apparatus: The social insurance management apparatus of Thailand is responsible for 03 agencies under the Ministry of Labor:
+ The Social Insurance Agency is responsible for: Collecting unemployment insurance contributions and managing unemployment insurance contribution data; verifying and determining unemployment insurance eligibility; checking the unemployment insurance contribution process; verifying and determining the reason for termination of employment, reporting unemployment registration and the job search process of employees, issuing decisions on unemployment benefits, and saving data into the online system.
+ The Department of Employment is responsible for: Registering unemployed people for job placement, receiving applications for unemployment insurance, interviewing, providing advice and job placement depending on the qualifications of unemployed people, introducing jobs, coordinating with the Department of Skills Development in case unemployed people need vocational training, storing data and online systems.