How Informal Employment Affects the Career Trajectories of Vocational Youth in Urban Vietnam

Abstract

This paper explores how informal employment shapes the career trajectories of vocationally trained youth in urban Vietnam. Despite ongoing reforms in technical and vocational education and training (TVET), a substantial number of vocational graduates are absorbed into the informal labor market, where employment is characterized by precarious conditions, lack of social protection, and minimal opportunities for advancement. Drawing on a conceptual framework of career path divergence, the paper compares the long-term developmental implications of formal versus informal employment pathways. It argues that informal work—while providing short-term income and flexibility—often leads to stalled skill development, income volatility, blocked upward mobility, and social marginalization. At the same time, vocational youth exhibit adaptive strategies, including informal apprenticeships, portfolio livelihoods, micro-entrepreneurship, and reliance on social and family networks. These strategies offer resilience but do not fully compensate for institutional deficiencies. The study concludes that to bridge the gap between vocational training and sustainable employment, policy must recognize informality as a structural feature of Vietnam’s urban labor market and design inclusive interventions that support recognition, mobility, and protection for youth at the margins.