The unemployment problem in hk essay
The unemployment price became a hot topic in the past couple of months when it increased to
3. 5 %, a recent substantial for almost ten years. The unemployed rate was higher than the 3. 2 per
cent joblessness rate recorded in the Might to This summer period. The underemployment rate in
the June to August period rose to 2 .
your five per cent by 2 . a few per cent in the May to July period.
Until just lately, most personnel who dropped their careers were from your manufacturing sector. They
were middle-aged stock workers with few skills and small education. In recent weeks
a large number of workers have been let go in the price tag and cafe businesses.
Unemployment has spilled over to the service sector from developing sector.
Kong is facing a prolonged downturn in the economy.
The substantial unemployment price has elevated many social and economic problems. For
example, the number of people who devote suicide can be increased. It is because more people
had dropped their jobs for a long time. This can be a serious danger to the lives of the poor. The
jobless people may also feel that it truly is unmeaningful to have.
Because of this, they will
dedicate suicide to fix the problem. Furthermore, the excessive unemployment rate results in the
increase with the rate of crime. There was an unemployed man who have stole rice because he was
too hungry and he did not have got money to even buy food! We can know how critical the
lack of employment rate can be.
By the way, bigger unemployment price causes lower purchasing power of people. A
lot of kinds of business are affected. Various people drop confidence in economics of Hong
They just do not believe lack of employment will be better. Some admit the Government
should certainly provide instant assistance for the unemployed. Some also say lack of employment is due to
the attraction of inexpensive labor through the border. The Government can no longer perform the part
of a bystander.
All of these previously mentioned show the affect of the joblessness. In spite of just how many
those who talked about the main topic of unemployment, everybody will be concerned
about this topic.
The subsequent sections can analyze this hot topic.
Reasons for lack of employment in Hong Kong
1 . Faster growth in total labor supply relative to regarding total employment
In 93 and year 1994, the increase in Hong Kong labor force is 2 . 9% and 3. 5%
respectively. Towards the end of 1993, the total labour supply can be 2 970 000.
Change in the entire
labour source is determined by the population growth, total employment as well as the emigration
condition. If the inhabitants growth as well as the total employment is secure, the extra work
supply increases the total labour supply. This kind of extra labour supply are mostly from the
inflow of illegal immigrants from China, imported work ( 30, 000 ), hiring of expatriates
( net boost is 45, 000 by 1992 to 1994 ) and the returnees from offshore. Thus, the
supply of work is higher than the demand and provide pressure about employment. Via March
to May of 1995, the total labour supply had increased 4. 4% but the total employment experienced just
6%, so this aggravated the joblessness rate. Yet , this is only a
superficial cause. The following factors can make clear the reason of unemployment within a
installment payments on your Change in the economic framework
The economic structure in Hong Kong has evolved from work intensive to high
technology and large capital intensive. Likewise, it alterations from production oriented to
service oriented industries.
Therefore , the manufacturing factories move to China and tiawan for cheap
time. From 1988 to year 1994, there are sixty, 000 careers lost every year. Of the total employment of
different groups, the area of the developing industries drops from 27. 4% in 1990 to
17% in 1994. A large number of labour will be released through the manufacturing companies. Though you will find
a great demand of time in the support sector, a lot of the unemployed even now cannot get
their task because of task matching problem.
They don’t have the expertise demanded in the job
marketplace, so there are both a whole lot of vacancies of careers and a lot of unemployed labour. This sort
of joblessness is called the structural joblessness which is a kind of involuntary
lack of employment.
3. China and tiawan.