The unemployment problem in hk essay

Essay Topic: Hong Kong, Lack employment,

Paper type: Works,

Words: 845 | Published: 04.14.20 | Views: 464 | Download now

Introduction

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.

Hong

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

Kong.

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

increased 3.

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

deeper method.

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.

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