Econ 100 Group 6

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Econ 100 Group 6

• How to tackle the unemployment problems in Hong
  Kong?

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Introduction

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

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Unemployment situation in HK
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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

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Unemployment rate
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By education

• higher educational levels ?lower
  unemployment rate
• tertiary education 3.2
• lower secondary education or below 8.5

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(No Transcript)
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By skills

• higher-skilled workers ?lower
  unemployment
• higher-skilled workers 2.4
• less-skilled workers 6.4

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(No Transcript)
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By occupations
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By Gender
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By age
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Compare the Unemployment rate with other
countries
Rank Country Unemployment rate() Date of Information
1 Andorra 0.00 1996 est.
2 Norfolk Island 0.00 NA
38 China 4.20 2004
40 Taiwan 4.20 2005 est.
42 Japan 4.30 2005 est.
44 United Kingdom 4.70 2005 est.
45 Macau 4.80 2004
49 United States 5.10 2005
55 Hong Kong 5.80 October 2005
92 European Union 9.40 2005 est.
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Structural Unemployment
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Cause of Structural Unemployment

• Changing in relative demands and supplies in
  different sectors and industries
• Mismatching between the unemployed skill labour
  and the jobs.

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Cures for structural unemployment
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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

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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

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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

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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

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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
  employmentrelated training, workplace
  attachment, etc.
• Enhancing the employability of them
• Decrease the unemployment rate

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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

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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 cant solve the problem of unemployment

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Upgrading the general education level

• In the recent years, the economy structure of
  Hong Kong is changing
• The skills of most labour cant 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

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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

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Frictional unemployment
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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

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Cures for Frictional Unemployment
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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

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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