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Following is the speech by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, at the Employers' Federation of Hong Kong Spring Luncheon 2012 today (February 10):
Y K (Pang), members of the Employers Federation, ladies and gentlemen,
Good afternoon. It gives me great pleasure to join you at this annual spring luncheon. Today is the 19th day of the Year of the Dragon. I wish all of you good health, every happiness, prosperity and success in the year ahead.
Since its formation in 1947, the Employers' Federation of Hong Kong (EFHK) has evolved into something more than a lobby of employers. It has now firmly established itself as an important, influential and highly respected body promoting good practices in human resources management, and advising the Government on major labour and manpower issues. As Secretary for Labour and Welfare, I much value the input and contribution of the EFHK. Your views on the Statutory Minimum Wage and your support for various measures to enhance labour relations and improve the rights and benefits of employees have made it possible for us to achieve some important breakthroughs in labour protection during this term of Government. I would like to take this opportunity to thank the Federation wholeheartedly for its sterling contribution, kind understanding, wise counsel and unstinting support.
We also gather today to present awards to winners of a photographic contest which celebrates the joint effort of employers and employees in promoting a joyous and harmonious work life. Indeed, not only is harmony a must in every productive work environment, it is the foundation of a stable and just economy. Among the key underpinnings of social harmony are access to gainful job opportunities, reasonable pay for work done, and amicable labour relations. I would like to give you a pen picture of our achievements and continued efforts on these issues, in which all employers have a stake.
Let me begin with employment.
Hong Kong's unemployment rate fell successively from its peak of 5.5 per cent in mid-2009 to 3.3 per cent in the fourth quarter of 2011, a level which signifies full employment. Total employment surged by about 10 800 to an all-time high of 3 661 900 in October to December 2011. The number of unemployed persons also fell notably to 116 100, the lowest level since early 2008. Last year, the Labour Department recorded 900 564 private sector vacancies, an all-time-high figure and up by 19.7 per cent over 2010.
Looking back on 2011 as a whole, despite external threats posed by the Eurozone sovereign debt crisis and the subdued economic growth in the US, our labour force and total employment enjoyed a phenomenal expansion of 2.6 per cent and 3.7 per cent respectively, both representing the strongest growth since 1996.
Whilst on jobs, I must take my hat off to all employers for the smooth functioning of the Statutory Minimum Wage. This important breakthrough in Hong Kong's labour policy is the culmination of years of discussion among all stakeholders including the EFHK and the fruit of mutual understanding, compromise and endeavour.
Thanks to a tight labour market and the implementation of the Statutory Minimum Wage, we saw substantial improvement in the employment earnings of the grass-roots workers in 2011. The median monthly household income (excluding foreign domestic helpers) in September to November 2011 recorded a year-on-year surge of 11.1 per cent, representing a 5.1 per cent real growth as well as the most rapid growth since the first quarter of 1997. The average monthly employment earnings for full-time employees (excluding government employees and live-in domestic workers) registered year-on-year growth of 7.6 per cent (or 1.8 per cent in real terms) during the same period. More importantly, the average employment earnings of full-time low-income employees in the lowest decile rose by 13 per cent in September to November 2011 year on year, or 7.4 per cent in real terms.
Turning to labour relations, I am sure you will all agree that cordial industrial relations have been a key ingredient of Hong Kong's economic prosperity and social stability. Hong Kong has been blessed with harmonious labour relations. Our average time lost to work stoppages in 2011 was only 0.19 days. That is one of the lowest rates in the world. At the same time, the Labour Department's successful conciliation rate stood at 71.7 per cent last year, remaining at a high level since 2007. We will keep up our efforts to foster labour relations that promote industrial harmony.
Despite this positive picture, there is no room for complacency. We have to brace ourselves for what is likely to be a challenging year ahead for the global economy, while continuing to invest in Hong Kong's long-term future - in education and manpower development so as to maintain our competitiveness.
To facilitate the formulation of policies and measures that are able to respond to the changing needs of our society, the Hong Kong Special Administrative Region Government conducts periodic manpower projection exercises from time to time to assess the manpower demand and supply situation in Hong Kong at the macro level in the medium term. The latest exercise, Manpower Projection to 2018 (MP2018), was launched in 2010 and is near completion.
To maintain our competitiveness, the Government has been actively promoting the four pillar industries and six industries where we enjoy clear advantages. These 10 industries together account for over 60 per cent of our GDP (Gross Domestic Product) and provide employment for over 2 million people. According to the initial findings of MP2018 released yesterday, the manpower requirements of the four pillar industries, namely, financial services, trading and logistics, professional services and tourism, would grow at an average annual rate of 1.4 per cent up to 2018. As for the six industries, the demand for quality workforce is expected to grow at an average annual rate of 2.8 per cent in the coming years, with the innovation and technology, education services as well as environmental industries projected to grow the fastest in terms of manpower requirements among the six industries. The growth rate will be higher than that of the economy as a whole (the average annual growth rate for the whole economy from 2010 to 2018 is projected to be 1.1 per cent).
At the other end of the scale, the overall manpower supply is projected to fall slightly short of the overall manpower requirement in 2018 by 14 000 (or less than 0.4 per cent of the projected manpower requirement in 2018) largely because of the slower growth in manpower supply as a result of an ageing population. The Government has put in place a host of measures to attract and nurture talents and upgrade the skills of our workforce in order to ensure an adequate manpower supply. It is noteworthy that the growth in both the manpower requirement and supply is projected to tilt towards workers with higher education qualifications. This is in line with Hong Kong's continued transformation into a knowledge-based economy.
These projections provide important pointers for employers, educators and policymakers alike who are committed to nurturing talent and enhancing the quality of our workforce. The detailed projection results of MP2018 are expected to be available soon.
Ladies and gentlemen, we all have a stake in ensuring that every segment of society can enjoy the fruits of work done. We all have a stake in nurturing the best available talents for our expanding industries. We all have an interest in striking a balance between improving the rights and benefits of our workforce and providing a business-friendly environment. As our economy moves up the value chain, the continued support and co-operation of employers, the business sector and employer groups like the EFHK is indispensable. Let us all join hands in contributing towards the continuous upgrading of our workforce and the sustainable development of Hong Kong.
Thank you.
Ends/Friday, February 10, 2012
Issued at HKT 16:14
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