Publications

Overview

Hong Kong s labor force is approximately 3.5 million, about half the countrys total population. The economy is showing strong growth (close to eight percent GDP in 2004), though the size of the workforce has grown minimally, with only a one percent increase last year. However, for 2005, an overall two to three percent increase is predicted, according to the HK Institute of Human Resource Management. Very large companies (500 employees +) are expected to increase employment by five to seven percent; a one to two percent increase is expected among smaller companies.

Department of Labor

The goal of the Department of Labor (DOL) in Hong Kong is to improve the well-being of the countrys workforce by promoting the health and safety of its workers. The Department is in charge of four main areas: Employment Services, Employee Rights and Benefits, Labor Relations and Safety and Health at Work.

The Employee Rights and Benefits Program was setup to establish and enhance employment standards in HK, as well as to create a balance between the interests of employers and employees. The Program is governed under the Employees' Compensation Ordinance, the Employment Ordinance (EO), Employment of Young Persons Regulations, and others.

To promote safety and occupational health in HK, the DOL provides training courses, training providers and the registration of safety officers/auditors for companies. In 2004, over 800 training courses were held on occupational safety laws in HK, including more than 300 custom sessions. In total, more than 13,000 employees and employers attended training sessions in 2004.

Programs to Combat Unemployment

The unemployment rate in HK has been gradually improving over the past several years and is currently around 6.7 percent.

Young Workers

In order to increase the number of young new hires, the DOL established the Youth Work Experience and Training Scheme (YWETS). The YWETS offers guidance and counseling services to youth and focuses on such areas as communication and interpersonal skills. Employers who hire young workers will receive $2,000/month (US$260) while the trainee participates in on-the-job training.

Mid-Level Workers

To help improve the employment situation for middle-aged job seekers, the DOL launched the Re-employment Training Program in 2003. This service assists those who are age 40 and above in finding new employment opportunities. Any employers who hire a participant of this program will receive a $1,500 (US$200) monthly allowance for on-the-job training. By the end of 2004, over 8,000 employee participants of the Re-employment Training Program had been placed in new positions.

Salaries

Over the past several years, salary increases on the whole have been limited in HK, with less than a one percent overall increase in 2004. However, for 2005, about of companies plan to raise salaries, though the increase is expected to be only around one percent on average. On the other hand, non-guaranteed bonuses are on the rise, now estimated at about 1.5 times an employees monthly salary. Many companies are switching from guaranteed bonuses to non-guaranteed in order to motivate and reward staff based on performance.