The number of people receiving vocational training also fell short, with 1.49 million people accounting for only 79 per cent of the target.
The figures were revealed at a Hanoi conference to review the labour situation and social achievements of last year.
Although last year’s results fell short of targets, Nguyen Thanh Hoa, deputy labour minister, said the figures reflected encouraging efforts from the state and people despite challenges posed by the economic downturn.
The report also revealed the number of people applying for social insurance had increased by nearly 49 per cent year on year.
By late last year, the proportion of poor households was estimated to be around 10 per cent, representing a decrease of 1.76 percentage points.
The management of foreign workers in Vietnam was reported to have improved with the number of foreigners granted a working licence having increased by 20 per cent from 2011.
Prime Minister Nguyen Tan Dung expressed his appreciation of these efforts, adding that Vietnam had not cut back on social funding despite economic hardships.
The ministry said it planned to create jobs for 1.6 million people this year. Over 1.5 million people will be newly employed in Vietnam while 85,000 others will be sent to work overseas.
The ministry also set a target of raising the number of people receiving vocational training to 1.9 million.
Other important targets include reducing the percentage of poor households nationwide by 2 points and poor districts by 4 points compared to 2012’s late figures.
Dung expressed approval of the targets, pointing out that greater efforts to reduce poverty, especially in remote areas, were urgently needed.