Tackling Unemployment in Hong Kong: Strategies, Programs, and Impact

1. Econ 100 Group 6 How to tackle the unemployment problems in Hong Kong?

2. Introduction • What is unemployment? • Unemployment rate pool of unemployed people = Labors force Voluntary unemployment Involuntary unemployment 3 major unemployment : Structural , Frictional , Cyclical

3. Unemployment situation in HK

4. Unemployment rate • Unemployment • Recovery after economic storm • Unemployment rate decreased • 2005 : the unemployment rate went down to 5.6% • Underemployment • 2004 : 3.3%  2005 : 2.8% • most affected by underemployment less educated and lower-skilled workers

5. Unemployment rate

6. By education • higher educational levels lower unemployment rate • tertiary education : 3.2% • lower secondary education or below : 8.5%

8. By skills higher-skilled workers lower unemployment higher-skilled workers : 2.4% less-skilled workers : 6.4%

10. By occupations

11. By Gender

12. By age

13. Compare the Unemployment rate with other countries

14. Structural Unemployment

15. Cause of Structural Unemployment • Changing in relative demands and supplies in different sectors and industries • Mismatching between the unemployed skill labour and the jobs.

16. Cures for structural unemployment

17. Stabilizing the relative demand and supply of different industries and sectors • Reduce and lower the speed of structural changes of the economy • Concentrate to develop a structure of economy • Government should help enhance the stability of structure in a country

18. Providing retraining programme • Due to the changing economy structure • Mismatch of labour skill exists • Unemployment rate will increase • Government provides some retraining programmes • Help labour to find a new job • Reduces the unemployment rate

19. Interactive Selective Placement Service • As disabled people are difficult to find a job • The number of unemployed people will rise • Government provides free recruitment service to employers and free employment service to job seekers who are disabled • Help them to find a job more easily • The unemployment rate will thus fall

20. Interactive Selective Placement Service • It is helpful to the disabled people • But, the amount of them is too small • Even though the unemployment will be improved • The change of percentage is not obvious • It is not an effective method to reduce the unemployment rate

21. The Youth Pre-employment Training Programme • The unemployment rate of teenager is high • The programme provide school leavers aged between 15-19 with a comprehensive range of employment–related training, workplace attachment, etc. • Enhancing the employability of them • Decrease the unemployment rate

22. The Youth Work Experience and Training Scheme • It provides on-the-job training of 6 to 12 months for young people aged between 15 and 24 with education attainment below the degree level • Trainees can also enjoy employment support and off-the-job training allowance • Improve the employment of the youngsters • The unemployment will fall

23. Results • These two programmes are decided for the youth • The target is to reduce the unemployment of the them • However, these two schemes are failed to achieve the goal • The major reason is that the economy is at recession • Even improve the skills of the teenagers • it still can’t solve the problem of unemployment

24. Upgrading the general education level • In the recent years, the economy structure of Hong Kong is changing • The skills of most labour can’t match the need of new industries and firms • The unemployment rate will increase • But, upgrading the general education level of public can help them to have better knowledge • Their occupation mobility will be improved • As a results, the unemployment will be reduced

25. Upgrading the general education level • During the economy structure changes, the unemployment rate will be pushed up • The higher the education level of the public, labour can have higher occupation mobility • worker can be easier to find a job in other sector • Unemployment rate will decrease

26. Frictional unemployment

27. Cause of Frictional Unemployment • Dynamics of the labour market flow or the normal turnover of the labour market • Some pool of temporarily, transitionally unemployed workers is unavoidable

28. Cures for Frictional Unemployment

29. Labour Department • Labour department providing the information of labour market such as the latest vacant of different companies • Increasing the information flow • The time of matching people with the job will be decreased • The time of searching a new job has been reduced and lower the frictional unemployment rate

30. Conclusion 1) Workers with higher education level have lower unemployment rate • Upgrade general education level 2) Unemployment rate still high among the skilled workers • Provide re-training programe 3) Frictional unemployment • provide more information for labor