Unemployment in Hong Kong :: Economics, Unemployment Essays

IntroductionThe unemployment score became a hot topic in the past few months when it bloom to3.5 per cent, a recent high for roughly 10 years. The jobless rate was highthan the 3.2 per cent unemployment rate preserve in the May to July period. Theunderemployment rate in the June to August period rose to 2.5 per cent from 2.3per cent in the May to July period. Until recently, most workers who disjointed theirjobs were from the manufacturing sector. They were middle-aged factory workerswith few skills and little education. But in recent months a large number ofemployees urinate been laid off in the sell and restaurant bloodlinees.Unemployment has spilled over to the service sector from manufacturing sector.Hong Kong is facing a prolong economic downturn.The high unemployment rate has raised many social and economic problems. Forexample, the number of tribe who act suicide is increased. It is becausemore people had lost their jobs for a long time. It is a serious threat to thelives of the poor. The unemployed people may also feel that it is unmeaningfulto live. As a result, they will commit suicide to solve the problem. Moreover,the high unemployment rate results in the increase of the rate of crime. Therewas an unemployed man who stole rice because he was also hungry and he did nothave money to even secure food We cigarette know how serious the unemployment rate is.By the way, higher unemployment rate causes lower purchasing power of people. Alot of kinds of business are affected. Many people lose confidence in economic scienceof Hong Kong. They do not believe unemployment will be improved. Some prescribe thatthe Government should provide immediate assistance for the jobless. Some also avow unemployment is due to the attraction of cheap labor across the border. TheGovernment can no longer play the role of a bystander.All of these higher up show the influence of the unemployment. In spite of how manypeople who have talked about the topic of unem ployment, everyone will beconcerned about this topic. The pursuit sections will analyze this hot topic.Reasons for unemployment in Hong Kong1. Faster growth in chalk up labor supply relative to that of total employmentIn 1993 and 1994, the increase in Hong Kong labor force is 2.9% and 3.5%respectively. At the end of 1993, the total fag out supply is 2 970 000. Changein the total labour supply is determined by the population growth, totalemployment and the out-migration condition. If the population growth and the total