Hong Kong Employment News

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Hong Kong's December Jobless Rate Declines to 6.5%

Jan. 18 (Bloomberg) -- Hong Kong's unemployment rate unexpectedly fell to a three-year low in December as rising tourism and booming trade with China helped drive the fastest economic growth since 2000.

The seasonally adjusted rate, which has dropped from a record 8.7 percent in July 2003, declined to 6.5 percent, the government said in a statement. The median forecast in a Bloomberg News survey of eight economists was for the rate to be unchanged at November's 6.7 percent level.

"It's a pretty impressive number," said Tai Hui, an economist at Standard Charted Bank Plc in Hong Kong. "Stronger trade has been the biggest contributor to jobs, but tourism has certainly also helped."

Hotels, airlines and restaurants are expanding in Hong Kong as relaxed visa rules boost visitor arrivals from China and surging trade with the mainland spurs hiring at ports. Chief Executive Tung Chee-Hwa on Jan. 12 said the economy grew 7.5 percent in 2004 and pledged to reduce unemployment further.

The number of people with jobs rose 20,400 to a record 3.33 million. That more than offset an increase in the city's labor force, which climbed by 10,200 to 3.55 million.

Hong Kong's overseas sales jumped 17 percent in November, the last month for which trade statistics have been published. China, which manufactures almost 60 percent of the city's exports and also is the No. 1 destination for goods passing through Hong Kong, said it's overseas sales and imports reached all-time highs in December.

Trade, Tourism

The city's container port, the world's busiest, handled 7.3 percent more boxes last year, a faster annual growth rate than in 2003. Volume rose to a record 21.9 million 20-foot containers, according to the Hong Kong Port Development Council.

China's July 2003 decision to let 150 million citizens travel to Hong Kong individually helped rekindle an economy that shrank in the second quarter of that year as the severe acute respiratory syndrome crimped travel.

Hong Kong's tourist arrivals, more than half of whom come from China, jumped 16 percent to 1.95 million in November and the city's tourism board said it expects the tally for 2004 to exceed 21.4 million, which would be a record.

A Hong Kong Disneyland theme park, scheduled to open in October, will provide 11,000 jobs and thirty-six hotels will open between now and 2008, according to Chief Executive Tung. Cathay Pacific Airways Ltd., Hong Kong's largest carrier, on Jan. 5 said it plans to increase its workforce by 10 percent, or about 1,500 people, as demand for air travel and freight increases.

Skills Gap

Still, reducing unemployment further may be hampered by what JPMorgan Chase & Co. economist Ben Simpfendorfer called Hong Kong's "structural" joblessness; an abundance of low-skilled workers unable to find jobs even in an economic recovery.

A survey of more than 1,200 executives at Asian companies by United Parcel Service Inc. published today showed that 30 percent of Hong Kong business with less than 250 employees plan to boost headcount this year. That was the lowest ratio among 12 countries surveyed and compares with 62 percent in neighboring China.

Hong Kong companies were the second-most pessimistic about their business prospects for the coming year, with 41 percent of respondents expecting an improvement, the survey showed. South Korean companies were the most pessimistic.

"Hong Kong is in a group of countries who are rather less optimistic about the coming 12 months," said Matt McGee, vice president of marketing for UPS in Asia, at a press briefing today.

The government, whose reported jobless rate is an average for the previous three months, is nonetheless upbeat.

"Labor demand is expected to be sustained in the near term," it said in today's release.

[hkskyline]

HK labour market faces both challenges and opportunities
Monday, November 7, 2005
Government Press Release

The greatest challenge facing Hong Kong's labour market is to tackle structural unemployment brought about by economic restructuring, globalisation, wider application of information technology and corporate downsizing.

But with challenges come opportunities. Hong Kong's economic integration with the Mainland, in particular the Pan-Pearl River Delta, and globalisation have also brought new opportunities to the labour market, the Permanent Secretary for Economic Development and Labour, Mr Matthew Cheung Kin-chung, said at a dinner hosted by the Chinese General Chamber of Commerce today (November 7).

"In recent years, globalisation and the information technology revolution have exacerbated the ongoing relocation of production processes and outsourcing of certain white-collar jobs outside the territory. The process has continued to chip away job opportunities in the lower strata.

"Some enterprises strive to substitute labour by capital equipment and corporate downsizing for greater cost saving to enhance competitiveness. This make lives all the more difficult for workers with low educational attainment and low skills," Mr Cheung said.

"For the local workforce, moving from one sector to another horizontally is obviously much easier than moving up the skills ladder vertically. This is particularly so when a third of our labour force has educational attainment of only lower secondary or below.

"The 'one-middle-two-lows' group in the labour market is facing the highest risk of unemployment. This refers to those people aged 40 or above and with relatively low educational attainment and low skill level," he said.

Mr Cheung said that although the number of unemployed middle-aged people had dropped from an all-time high of 140,000 to almost 100,000, it still constituted about half of the total number of unemployed people.

Meanwhile, the unemployment rate of people with lower academic qualifications is relatively higher. The jobless rate of people with educational attainment of lower secondary or below is 8.1%, which is higher than those with tertiary education and degree level by four percentage points.

"The Government has adopted a multi-pronged and robust approach to meet the challenges on the employment front by improving the business environment to create more jobs," Mr Cheung said.

"We will continue to promote the development of four core industries - tourism, logistics, business services and financial services – with the aim of creating more jobs through market forces.

"At the same time, we will enhance the skills of our workforce to meet the labour demand of the knowledge-based economy," he said.

The number of long-term unemployed dropped from a record high of about 100,000 during the period from June to August in 2003 to 60,000 recently. The average duration of long-term unemployment was also reduced from an all-time high of 113 days in November 2003 to 76 days in January 2004.

Mr Cheung pointed out that although the figures indicated that some people who had difficulty in finding jobs before were placed into employment gradually, tackling unemployment would still be a long-term challenge.

On wages and working hours, Mr Cheung said that wages in some industries had increased gradually with the sustained economic recovery in Hong Kong. According to statistics released by the Census and Statistics Department, the average wage rate in March and June this year rose by 0.7% and 0.4% respectively over the same period last year, reversing the downward trend from 2002 to 2004.

On future positioning and opportunities, Mr Cheung said, "With further economic integration with the Mainland, particularly the Pan-Pearl River Delta, and globalisation, our labour force especially young people, have to rise to the challenge and embrace opportunities brought about by the opening up of the labour market. Many professionals and managerial staff are now working on the Mainland and overseas."

According to official statistics, 240,000 Hong Kong residents worked on the Mainland last year, a four-fold increase compared with the 1990s. Most of them are managers, executives or professionals. Nearly 90% of them work in Guangdong.

"Meanwhile, we are opening our door to talent from the Mainland and overseas through more flexible measures. This would help enhance our economic vitality and create more job opportunities. In the first three quarters of this year, we approved applications submitted by nearly 20,000 talented workers from the Mainland and overseas to work in Hong Kong through the 'Admission Scheme for Mainland Talents and Professionals' and the 'General Employment Policy'.

"The Government is considering launching a new admission scheme next year to allow a number of talented workers from the Mainland and overseas to reside in Hong Kong without the requirement of securing an offer of local employment first. Attracting such people will help increase Hong Kong's competitiveness, capital flow and job opportunities," Mr Cheung said.

From a macro-perspective, the implementation of the first phase of CEPA created about 29,000 jobs for Hong Kong in the first two years (2004-05). The launch of the third phase of CEPA should bring more business opportunities for Hong Kong enterprises and professional sectors on the Mainland. It will increase Hong Kong's attraction to overseas investors as well. All these help sustain the economic recovery and encourage private enterprises to create job opportunities.

On the employment outlook in the near term, Mr Cheung said: "With the sustained pick-up in overall economic activities, labour demand is likely to continue to grow. This will have a positive impact on the employment market in the next few months. The newly opened Hong Kong Disneyland has already created 18,000 new jobs.

"The extension of the Individual Visit Scheme to Chengdu, Jinan, Shenyang and Dalian and the Sixth Ministerial Conference of the World Trade Organisation to be held next month will pave the way for continued growth of the tourism sector and stimulate demand in hotel, retail and catering industries."

He pointed out that between now and the end of 2006, the Government will invest about $190 million to carry out over 120 Rural Public Works and Urban Minor Works projects, accelerate the building of a number of municipal works projects, advance maintenance works to 30 community halls and centres, and carry out projects associated with preparations for the 2008 Olympic Equestrian Events.

These works, together with projects initiated by the Hong Kong Housing Society and the Urban Renewal Authority to help property owners undertake proper building maintenance, are expected to create over 6,300 jobs for the construction industry and alleviate its unemployment problem.

"Another 2,700 jobs will be created if the plan to construct the new Central Government Offices and the Legislative Council Building is realised in 2007. A series of infrastructure works that are under way, such as the construction of the KCRC Lok Ma Chau Spur Line, Route 8, the KCRC South Kowloon line, the Hong Kong-Shenzhen Western Corridor, a second passenger terminal building at the airport and the AsiaWorld-Expo complex, will bring a considerable number of job opportunities during the construction process or after completion.

"In the next four years, 34 new hotels are expected to come on stream, bringing job opportunities for the construction industry and creating 8,000 jobs in the hotel and related industries. When the first phase of the redevelopment plan of Ocean Park is completed in 2008-09, there will be 2,600 to 4,000 new jobs available; and the number of new jobs will increase to 11,300 to 12,800 in 2021-22.

"Speaking overall, as our economic fundamentals remain sound, we are cautiously optimistic about the employment outlook," Mr Cheung said.

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Monday December 19, 5:38 PM
DATA VIEW: HK Jobless Rate Stays At 5.3% In Sep-Nov

HONG KONG (Dow Jones)--Hong Kong posted a jobless rate of 5.3% for the September-to-November period, slightly above expectations and unchanged from the three months ended October.

The unemployment rate rose in sectors such as construction, but was offset by a stronger job market in the manufacturing, education and sanitary services sectors, the government said Monday.

Employment rose slightly by around 2,200 to an all-time high of 3.418 million for the three months ended November, a trend that is likely to continue given the city's strong economic growth. The finance and tourism-related sectors are expected to remain the major drivers of job growth.

"The improvement in consumer spending and vibrant inbound tourism should continue to create job opportunities for the tourism-related services sector," the government said.

According to a Dow Jones Newswires survey, economists had expected a 5.2% jobless rate for September-November.

Daniel Chan, strategist of DBS Bank in Hong Kong, expects the job market for labor-intensive sectors like retail sales and catering to benefit the most from improving domestic consumption.

However, a recovery in the construction sector's job market will remain slow due to a lack of major infrastructure projects, said economists.

DBS Bank's Chan forecast the jobless rate at 4.5%-5.0% by the end of 2006, while Hang Seng Bank expects a 4.8% rate.

The city's gross domestic product grew 8.2% year on year in the third quarter, faster than 7.3% in the second quarter. For the full year, the government expects GDP to expand 7%.

[hkskyline]

Unemployment and Underemployment Statistics for September - November 2005
Monday, December 19, 2005
Government Press Release

According to the latest labour force statistics released today (December 19) by the Census and Statistics Department, the seasonally adjusted unemployment rate stood at 5.3% (provisional figure) in September - November 2005, same as that in August - October 2005. Meanwhile, the underemployment rate decreased from 2.5% to 2.4% (provisional figure).

Comparing September - November 2005 with August - October 2005, decreases in the unemployment rate (not seasonally adjusted) were mainly observed in the manufacturing, education services and sanitary services sectors, while increases were more apparent in the construction and restaurants sectors. As to the underemployment rate, decreases were mainly seen in the restaurants and sanitary services sectors.

Total employment increased by around 2 200, from 3 415 800 in August - October 2005 to an all-time high of 3 418 000 (provisional figure) in September - November 2005. Meanwhile, the total labour force decreased by around 1 100, from 3 609 100 to 3 608 000 (provisional figure).

The number of unemployed persons (not seasonally adjusted) declined by around 3 300, from 193 300 in August - October 2005 to 190 000 (provisional figure) in September - November 2005. Concurrently, the number of underemployed persons decreased by around 2 000, from 90 000 to 88 000 (provisional figure).

Commentary

A Government spokesman noted that the labour market held broadly stable in September - November 2005, with the total labour force showing little change, while the total employment hit an all-time high of 3 418 000. The number of unemployed persons (not seasonally adjusted) fell modestly and the seasonally adjusted unemployment rate remained static at 5.3%, which was the lowest level recorded since July - September 2001.

The spokesman pointed out that the overall labour market sentiment remained generally buoyant.

"The improvement in consumer spending and vibrant inbound tourism should continue to create job opportunities for the tourism-related services sector.

"In November, the Labour Department achieved 10 875 job placements, a significant increase of 34% over the same period last year. Meanwhile, the Department captured 39 775 private sector vacancies, up a hefty 36% over the same month last year. On average, the number of vacancies received from the private sector on each working day remained at a high level of 1 650," the spokesman said.

"The near-term outlook will depend on the overall business conditions and in particular job creation in the corporate sector during the festival period around Christmas and the New Year," he added.

Further Information

The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.

The survey for September - November 2005 covered a sample of some 25 000 households or 78 000 persons, selected in accordance with a scientifically designed sampling scheme to represent the population of Hong Kong.

Data on labour force characteristics were obtained from the survey by interviewing each member aged 15 or over in the sampled households.

In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organisation.

[hkskyline]

Companies to go on hiring spree as economy booms

More Hong Kong companies are planning to hire more staff than at any time in the past eight years, driven by robust economic growth, according to a survey by employment consultants Hudson Highland Group.

Mark Lee
Hong Kong Standard
Wednesday, January 11, 2006

More Hong Kong companies are planning to hire more staff than at any time in the past eight years, driven by robust economic growth, according to a survey by employment consultants Hudson Highland Group.
The survey found that 54 percent of companies plan to add workers in the next three months, the highest level since the survey began eight years ago. A further 44 percent say they will keep headcount at current levels. In the same survey three months ago, 52 percent of companies said they were adding staff. "We are surprised by the continual upward trend in companies' hiring intentions, as anything above 50 percent already indicates a very robust economy," said Hudson Asia chief executive Gary Lazzarotto.

The survey found law firms are the keenest to hire, with 62 percent of those surveyed saying they will be adding staff in the next three months.

They are followed by firms in the banking and financial services sector, where more than 60 percent indicated they were adding new staff.

Lazzarotto said law firms and financial services firms in Hong Kong have benefited from the city's financial markets, which are increasingly favored by mainland companies seeking access to capital to fuel their expansion.

More than 57 percent of the 500 local companies surveyed said they were willing to increase salaries for new hires by more than 5 percent.

Hong Kong's unemployment rate fell to 5.3 percent in the quarter ending October 31, from 6.1 percent at the start of the year.

The improving job market is not across-the-board, however. "The improved demand for workers is concentrated on the higher-end market, such as management positions in the financial and business services industries," said Core Pacific-Yamaichi senior economist Kent Yau.

"The lower end of the market is not as robust as the top-end."

Core Pacific forecasts Hong Kong's unemployment rate could rise in the second half as rent increases and falling consumer demand lead to falls in retail jobs.

[Manila-X]

Good news for HK! It's fortunate that almost everyone in this city has a job! It would be tough living in a competitive city like HK if you don't have one!

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Wednesday January 11, 4:40 PM
Hong Kong mulls curb on expat perks

HONG KONG (AFP) - The Hong Kong government has proposed an "anti-racism" bill that would make it harder for companies here to offer generous packages of perks to foreign employees, a press report says.

The South China Morning Post said that the measure, already in an "advanced stage of drafting," would require firms to prove that employees had expertise not easily available already from locals in the Chinese territory.

Foreign-born permanent residents would not be eligible, the paper said, citing Deputy Secretary for Home Affairs Stephen Fisher.

Harry O'Neill, managing director of headhunting firm Whitney Group, told the newspaper that the move would make Hong Kong a less attractive place to do business.

He said terms for expatriate employees -- which can include housing, education and travel allowances -- did not discriminate on the basis of race.

The bill is due to be presented to the Legislative Council in the next two months.

[hkskyline]

Racial salaries to be banned

Expatriate pay packages will not be illegal under proposed racial discrimination legislation, but setting remuneration according to race will be, the official overseeing the new law said Tuesday.

Mimi Lau
Hong Kong Standard
Wednesday, January 18, 2006

Expatriate pay packages will not be illegal under proposed racial discrimination legislation, but setting remuneration according to race will be, the official overseeing the new law said Tuesday.

Acting Permanent Secretary for Home Affairs Stephen Fisher said racial discrimination is defined by nations of origin, not nationality.

For example, if two Britons are hired for the same job - one a UK Indian, the other caucasian - the UK Indian will be able to sue his employer for paying the UK caucasian a higher package after the race law comes into effect.

Fisher also said the law, if accepted by the Legislative Council, will apply to "protected areas" such as employment and education. "The law is supposed to be logical, reasonable and fair," he said.

But Erika Morton, country manager for executive recruitment firm Hudson Global Resources, feared that if the law is too strict, "Hong Kong may risk becoming less attractive for expats."

But Fisher said Hong Kong would continue to attract foreign talent, and employers would still be allowed to offer more favorable remuneration packages if they met certain requirements. These include that the candidate is recruited overseas, is not a Hong Kong permanent resident, and that it can be proved their skills are not readily available locally.

"If someone stays in Hong Kong for seven years and applies for Hong Kong permanent residency, it's a conscious decision to give up expat pay packages," Fisher said.

But he added the exceptions for the overseas terms can continue only if the staff stays within the same company or group of companies.

According to a paper presented to the government's race issues advisory body, the "grandfather clause" in the Bill for existing employees on overseas terms will continue to apply (before the race law comes into effect) "irrespective of whether or not they are or have become permanent residents of Hong Kong."

After the law comes into effect, racial discrimination will no longer be tolerated in protected areas like employment and education.

Unionist lawmaker Lee Cheuk-yan welcomed the new law.

"It won't affect the local Chinese labor market because the unique skills, contacts and background of foreign talents can be retained while discrimination based on race will be eliminated," Lee said.

It was announced last week that Australian civil servant Shane Solomon will be paid HK$4.1 million a year when he becomes Hong Kong's Hospital Authority chief executive on March 1. This is 10 percent less than that paid to former hospital chief William Ho.

The legislation, which is at an advanced stage of drafting, is expected to be introduced to Legco within the current legislative year, Fisher said.

"There has been a slight delay ... we didn't meet the original deadline [end of last year] but we're trying to meet the new deadline [to introduce the law to Legco] before the current legislative year ends," Fisher said.

[hkskyline]

Hong Kong unemployment holds steady

HONG KONG, Jan 19, 2006 (AFP) - Hong Kong's unemployment rate held steady at 5.3 percent during the October to December period with employment remaining at an all-time high, official figures showed Thursday.

Total employment rose by 13,000 jobs to a record of 3.43 million and the 5.3 percent figure was the same number for the three months to November 2005, the government said.

A government spokesman said the unemployment rate averaged 5.6 percent in 2005 as a whole, sharply below the 6.8 percent rate in 2004 thanks to faster growth in total employment.

He said the labour market remained active during the three-month period and demand is expected to stay firm in the run-up to the Lunar New Year beginning January 29.

[hkskyline]

Wednesday February 15, 9:35 AM
PREVIEW: HK Unemployment Likely Down To 5.2% In Nov-Jan

HONG KONG (Dow Jones)--With the local economy appearing to create jobs at a faster pace, Hong Kong's unemployment rate is expected to have finally edged lower in the latest three-month period, after holding steady at 5.3% since October.

A Dow Jones Newswires poll of seven economists found their expectations centered on an unemployment rate of 5.2% for the November-January period, compared with a rate of 5.3% in the October-December period and both previous three-month periods.

"Support from mainland China's strong economy has led to a solid and broad-based expansion in the economy, which in turn has increased the demand for labor," Lehman Brothers economists wrote in a report.

The most recent Purchasing Managers Index survey also found that private-sector employers accelerated their hiring in January, with the employment component of the index rising to an eight-month high of 53.4.

"Anecdotal evidence suggested that staff were taken on in response to the latest increase in new orders and as part of future company growth programs," the index's compilers said.

Still, new jobs were also added throughout the end of 2005 - just not enough to make a difference in the headline unemployment rate.

"We think the pace of employment growth is unlikely to be fast enough to push the jobless rate lower," Citigroup economists wrote in a report. "The labor force continues to grow steadily and would more than offset the increase in jobs."

However hiring is likely to pick up again now that the Chinese New Year holiday has passed, pushing the jobless rate below 5% in coming months, the Citigroup analysts said.

The Census and Statistics Department is scheduled to issue Hong Kong's latest employment and unemployment data at 0815 GMT Friday.

TABLE: Forecasts for HK November-January unemployment rate

Bank of East Asia       5.2%
Capital Economics       5.2%
Citigroup               5.3%
DBS Bank                5.1%
ING                     5.2%
Lehman Brothers         5.2%
Standard Chartered      5.2%
Consensus (median)      5.2%

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Hong Kong unemployment rate falls to 52-month low

HONG KONG, Feb 17, 2006 (AFP) - Hong Kong's unemployment rate fell to a 52-month low in the three months to January 2006 coming in at 5.2 percent, official figures showed Friday.

This was compared with the unemployment rate of 5.3 percent in three months to December last year.

A government spokesman said a fall in total employment was offset by a larger decrease in labour supply hense the drop in the unemployment rate.

Total employment dropped by 4,500 to 3.427 million during the current period, partly due to the reduced business activity and labour demand in some sectors during the Lunar New Year holidays.

The total labour force fell 12,400 to 3.6 million.

"It is customary for many of the business establishments to review and if necessary adjust their staffing position shortly after the Lunar New Year holidays," a government spokesman said.

Whether unemployment will continue to decline in the short term is dependent upon the results of such a review, he added.

[hkskyline]

Hong Kong announces new immigration program to draw talent
23 February 2006

HONG KONG (AP) - A new immigration program aimed at spurring economic growth by attracting young professionals to settle in Hong Kong will be introduced later this year, officials said Thursday.

The program, which will grant entry to 1,000 relatively young and well-educated people from mainland China and overseas each year, will be launched in June, security chief Ambrose Lee said.

"We are targeting at people that Hong Kong needs and will help our long-term development," Lee said in a statement.

Hong Kong's population of 6.9 million is growing slowly, and officials have said they are looking for ways to revitalize it in order to better sustain future economic growth.

"Our target is people who have both an established track record and potential to develop," Lee said. "The new scheme will facilitate local economic development which would in turn create more jobs for the local population."

Applicants must be between the ages of 18 and 50, have completed an undergraduate degree and be proficient speakers of either Chinese or English. Lee said they will be graded on a points system incorporating other factors, and the highest ranked will be allowed to stay in Hong Kong for one year initially, with extensions possible later.

The American Chamber of Commerce in the territory questioned the program's usefulness.

"It's unclear to whom this program is addressed and why the timeframe should be so tightly restricted," the group said in a statement. The program "seems a modest proposal for top professionals to enter the territory with their families."

Applicants to the new plan are not required to have a job offer from an employer in Hong Kong, as those applying for work visas are, but must still demonstrate that they are nonetheless capable of supporting themselves and their families without government assistance.

Hong Kong immigration authorities have said they typically receive 15,000 to 20,000 applications for employment visas a year. A separate program for professionals from mainland China, which has been in effect since July 2003, has averaged 3,000 to 4,000 applications a year.

[hkskyline]

Hong Kong's unemployment rate likely stayed steady in December-February, analysts say
14 March 2006

HONG KONG (AP) - Hong Kong's unemployment rate likely stayed steady at 5.2 percent in the latest three-month period, economists said, despite continued growth in new jobs.

A Dow Jones Newswires poll of 10 economists found expectations centering on an unemployment rate of 5.2 percent for the December-February period, unchanged from the figure in the previous November-January period.

The government plans to issue the latest number on Thursday.

While the unemployment rate is at a 52-month low, both total employment and the size of the labor force declined in the November-January period. The government said the drop was likely due to seasonal fluctuations in hiring patterns around the Chinese New Year holiday in late January.

The labor market is likely to have returned to a more normal state in February, with a continued pickup in employment, economists said, though that isn't expected to be enough to push down the headline unemployment rate.

"To meet the increase in customer demand, many companies have resumed hiring workers after the Lunar New Year holidays ended in early February," Citigroup economists wrote in a report.

Many economists expect job growth to increase over the course of the year, gradually pushing down the unemployment rate in coming months.

"The unemployment rate will edge down to 5 percent by the end of the first half on robust domestic demand," said Daniel Chan, senior investment strategist at DBS Bank in Hong Kong.

[hkth]

From news.gov.hk:
Jobless rate stands at 5.2%

Construction output down 2.5%

[hkskyline]

More youths keen to work in mainland
Mimi Lau
Hong Kong Standard
Thursday, April 13, 2006

The number of young Hong Kong people willing to work in the mainland has risen sharply, researchers say.

One in three teenagers and young adults interviewed by the Hong Kong Federation of Youth Groups last month showed a keen interest to work in China - a dramatic increase from just 15 percent in 2003.

Nearly 800 respondents aged between 15 and 24 took part in the federation's survey on young people's transition from school to work. Four in five of those interviewed were still studying. More than 60 percent of respondents believed it would require at least a bachelor's degree to land their dream job.

The federation's executive director Rosanna Wong Yick-ming said the results show there is a shortage of university degrees in Hong Kong.

"There are many bridging programs allowing other pathways for young people to realize their dream. So the function of these bridging programs is very important," she said.

The survey found that 60 percent of students preferred jobs with a high salary, while 39 percent would choose a job according to their interests. About 70 percent of the 130 interviewed youths already in the workforce said their jobs were unrelated to what they had studied.

Liberal Party lawmaker Andrew Leung Kwan-yuen, who is also chairman of the Vocational Training Council, said it is the SAR's legions of "hidden youths" who feel the culture shock of the real world after leaving school.

These are teenagers who quit school but do not look for jobs, and have a minimum social life. The government estimated there were 75,500 so-called hidden youths in 2004.

[hkskyline]

HK Jan-March unemployment seen dipping to 5.1 pct
By Susan Fenton

HONG KONG, April 19 (Reuters) - Hong Kong's unemployment rate probably fell to a seasonally adjusted 5.1 percent in January-March, helped by hiring in financial services, a Reuters survey shows. The jobless rate has dropped steadily from a record high 8.6 percent in summer 2003 to 5.2 percent in December-February 2006, its lowest level in nearly five years.

The government is due to release January-March unemployment data on Thursday after 4.15 p.m. (0815 GMT).

Declining unemployment has coincided with economic recovery. The territory has been one of Asia's best performing economies, growing by more than 7 percent annually in the past two years and is poised for a further 5 percent expansion this year, economists say.

That should push the jobless rate below 5 percent although it is expected to move at a slower rate.

"We see the unemployment rate at 4.5 to 5 percent by the end of the year," said Tai Hui, an economist at Standard Chartered Bank. "Demand for labour is still strong in financial services and professional sectors, but in the retail sector companies are now more cautious amid increasing rents and more competition."

Surging oil prices, which this week hit record highs above US$70 a barrel, are a concern for companies. As a service-based economy, though, the territory will be less vulnerable to energy costs than economies with large manufacturing bases such as Japan and South Korea, economists said.

The territory continues to expand as a financial services and supply chain hub for China, boosting employment. The territory in the past couple of years has drawn record foreign investment as companies have sought to gain a foothold in China. At the top end of the labour market there is a shortage of professional talent to fill top jobs.

The government recently said it planned to adopt a more flexible immigration policy, allowing professionals from outside the territory to come and look for work even if they did not yet have a work visa.

However, the territory appears to be losing some appeal for expatriates. It slumped to 32nd place in a recent ranking of desirable foreign postings by consultancy ECA International, from 20th place last year, with severe air pollution cited as a mjaor factor.

Forecasts for the seasonally adjusted unemployment rate for January to March (percent):
Bank of East Asia 5.2
Citigroup 5.2
Hang Seng Bank 5.2
HSBC 5.1
ING Financial Markets 5.1
JP Morgan 5.1
Lehman Brothers 5.1
Standard Chartered Bank 5.1
UBS 5.1
Median 5.1

[hkth]

From news.gov.hk:
Jobless rate steady at 5.2%

[hkskyline]

對公司歸屬感 亞太區港包尾
四成打工仔想跳槽
03/06/2006
太陽報

【本報訊】香港打工仔對任職的公司缺乏歸屬感。一項國際調研公司的調查發現，包括港人在內的中國地區僱員對公司的歸屬感不佳，在亞太區中更排列最尾，近四成人隨時準備跳槽。

內地加薪一倍挽人才
國際調研公司去年訪問了一百二十間來自中國（包括香港）、新加坡、馬來西亞、泰國、澳洲及新西蘭的機構共三千名僱員，發現中國僱員對公司歸屬感最差，一成九人對公司完全無歸屬感，三成九人表示找到新工作想離職。新加坡僱員對公司最有歸屬感。

該公司調查研究總監（國際）Patrick Kulesa表示，調查結果顯示中國經濟發展迅速，僱員有更多工作機會，職員想跳槽亦與中國企業存在官僚作風有關。中國香港（地區）商會廣東常務理事及專業服務小組委員會主席王慧恩指出，內地不少企業加薪九成甚至一倍挽留及吸引專才，現時內地最渴求香港的專業服務、銀行及管理層人才，香港因而面臨人才流失危機。

香港城市大學管理學系上月訪問了三百名本港僱員，在一至六分當中，僱員給予的機構變革指數為三點四五分，即認同管理層執行變革，以提升公司競爭力，兩成一人擔心因變革而失去工作。

[hkskyline]

More delays looming on expat package bill
11 May 2006
South China Morning Post

The anti-racism bill faces further delays, with Home Affairs Department officials meeting the international business community today to discuss proposed tough curbs on expatriate packages.

Deputy Secretary for Home Affairs Stephen Fisher told the Committee on the Promotion of Racial Harmony yesterday that drafting of the bill was nearing completion.

The bill was previously expected to be presented for lawmakers' consideration in March.

Mr Fisher said some chambers of commerce, those from Europe and North America in particular, had recently voiced concerns about provisions in the draft bill on overseas terms of employment. They fear these could hinder their member companies' ability to bring the best available talent to Hong Kong to run their operations.

Companies operating in Hong Kong must justify generous offers of expatriate terms - which can include housing, education and travel allowances - by proving that the recruits have expertise not readily available in Hong Kong. Permanent residents will not receive such special terms.

Local employees in similar posts can file a complaint to the Equal Opportunities Commission and seek compensation.

The new hiring criteria will only apply to companies which hire foreign workers after the law comes into effect. Workers already on expatriate packages can continue on the existing terms of employment provided they remain in the same group of companies.

Mr Fisher said after the meeting it was not the government's intention to stop expatriates from gaining permanent residency.

"It is just that if you are a local, why do you want all these benefits? Your children should go to local schools and you don't need to go back to your home every year or every six months - Hong Kong is your home."

[Kaitak747]

I don't think it's good for HK to further attract foreign talents working in HK on a long-term basis!!!