Youth Study Series No.17
Dec 1998

A Study on Youth Unemployment in Hong Kong


The Asian financial crisis in late 1997 has brought about a negative impact on Hong Kong's economy. Information from the government shows that the latest local unemployment rate has risen to a 15-year high of 5.3 per cent, with the rate for young people is even worse, at about 25.1 per cent for the 15 to 19 age group and 7.2 per cent for the 20 to 29 age group. The purpose of this study is to look into the potential crisis of youth unemployment in Hong Kong, taking into consideration the impact on various facets of young people, such as their personal expectation, life values, self-worth, attitude towards the government, and even the relationship of family members. We hope to improve our understanding on their views, which will facilitate the creation of a suitable policy and improved services.

Both a qualitative case study and a quantitative survey are employed for this study. For the qualitative case study it is conducted through in-depth case interviews among youths that have been unemployed more than three months in the last two years. An interview guideline with open-ended questions is directed to solicit respondents?opinions towards the experience of unemployment. A total of 34 in-depth case interviews have been conducted from October to November 1998. For the quantitative survey it has been conducted by telephone from 26 October to 4 November 1998. A total of 357 people, aged 15 to 29, have been successfully interviewed. The analysis contains a synthesis of both the qualitative and quantitative data from the respondents and from an extensive review of the literature.

As revealed from the result of the telephone survey among unemployed youths, more than one-quarter of the respondents have been unemployed in the last 13 months. Over one-third of the respondents have faced salary cut or the reduction of fringe benefits. The attack of unemployment prevails at both low and high education levels.

Furthermore, it is also observed that the mental health of unemployed youth has deteriorated as a result of heavy burden on financial insecurity. Over six per cent of the respondents indicated that it would be acceptable for unemployed people to commit suicide. An alarming signal has been sent to our society.

Findings of the telephone survey also indicate that youth values are challenged and mutated by the downturn of economy. Unemployed young people are generally packed with grievances over the government. This will pose a potential threat towards the stability of the society if these grievances are not properly handled.

While many respondents are aware of their inadequacy in language skills and abilities in using information technology, only very few respondents show motivation for learning. The government should be alert that youth unemployment is an issue beyond unemployment. It is an issue of life-long education to enhance competitiveness of the labour force.

Nearly half of the respondents still expect to find a job with a wage higher than the average salary of the working force. This shows that the unemployed youths may not be very sensitive to the job market. The government should take a more proactive role to provide support for unemployed youths in this adverse economic environment.

In view of the above discussion, the Federation will recommend:

  1. Since the issue of youth unemployment is basically concern with the economy, the government should take a more proactive role and must undertake a wide range of strategies to improve the economic situation of Hong Kong.

  2. As revealed in this study, unemployed youths in Hong Kong are lack of the motivation to strike for the enhancement of their competitiveness. It is recommended that the government should further promote the concept of continued education by providing trainings as well as developing a sound accreditation system for these training programmes.

  3. Due to the fact that practical working experiences or even pseudo-work experiences are greatly helpful for preparing unemployed youths back to new job positions, it is advisable that the government should consider arranging various kinds of short-term job or pseudo-work experience for the unemployed youths. This will fulfill multi-purposes for unemployed youths such as the motivation to learn, the enhancement of competitiveness, the ease of stress on mental health as well as the accreditation and recognition of those who wish to work and stand on their own feet.

  4. In view of the urgency of youth unemployment, immediate measures such as setting up an "unemployed youths support network" on a community base should be considered by the authority concerned. As a result, unemployed young people may no longer have to seek jobs through various unorganized sources, but have information on job openings, market monitors, employment counselling, or work attitude training provided at a one-stop location.


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