Unemployment refers to people who are available for work but are not employed and have tried to seek for jobs during the previous four weeks. Unemployment can also be subdivided into classical unemployment, frictional unemployment, structural unemployment, cyclical unemployment, seasonal unemployment and long-term unemployment. Unemployment lowers the living standard and creates financial burden to the unemployed people. It also increases mental stress and lowering the self-esteem. In this report, recent structural unemployment situation of Hong Kong is first discussed, then government policies and their effectiveness are focused.
2. Topic Definition/ Justification
Structural unemployment represents a type of unemployment happens when industrial transformation takes place. Development or changes of policies and economic structure will also lead to structural unemployment. Unemployed people will need to enhance their skills or to further study, so that they can meet the hiring requirements. (Nallari, 2010)
Before 20th century, Hong Kong was a small village which depended on fishery. Then the manufacturing industry started to develop. During the 50s and 60s, it was the heyday of manufacturing industry (Carroll, 2013). As refugees came from mainland to escape from the civil war in China, the great increase of labor force fulfill this industry. Most of the factories manufactured wigs, plastic flowers, garments...etc., and most of them brought family business to here. The Hong Kong industry started shifting since 80s when the mainland started reform and opening up policy and capital and factories were moved to mainland. (HULU Culture , 2011)
Structural Unemployment occurred at this time. Today, there are lots of labors still cannot find a new job. As most of these workers were low educated and only had few skills, they could not meet the requirements in current positions.
For the definition of the structural unemployment, it is a kind of long-run unemployment, which is cannot be eradicated and permanently existing. (Mutikani, 2009) There are several complicated reasons for structural unemployment. Labors, however, are causing the issue mainly, such as lack of specific working skills, distance and the unsatisfied treatments. In addition, the failure of job matching by market and government policy may exacerbate the situation either. (Investopedia, 2013)
3. Outlook of Hong Kong Structural Unemployment
According to the official statistic, index figures reflect that economic in Hong Kong is changing to be knowledge-based. Since the factor of the cost GDP, the knowledge-based industries had added the percentage of proportion form 18 in 1998 stably increase around 27 percent in 2007. For fitting in with the opportunities of new employment and the requirement of jobs, the population of labor keeps improving the level of their education and skills. There are 31 percent in the population of Tertiary Education Labor in 2008, apparently...