Hongkong Human Resource Case Study

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Taking Stock of Hong Kong’s Human Resources

Paveena Vasusophon
ID: 5043240826

Table of Contents
Introduction of Hong Kong situation
Overview of the present state of Hong Kong economy and human capital 3
The roles of human capital and human resource planning in Hong Kong’s competitiveness 5
Evaluation of current performance and problems
SWOT analysis of Hong Kong’s human capital6
China’s control over Hong Kong politics9
Evaluating the effects of the Admission of Talent Scheme and the Admission of Mainland Professionals Scheme10
Recommendations (Part I)
Definition of knowledge-based economy (KBE) 11
The importance of developing human capital in Hong Kong 11
Type of people Hong Kong needs 12
Government’s role(s) in enhancing Hong Kong’s competitiveness and collaborating with public and private firms 13
Recommendations (Part II)
Hong Kong’s long-term policy and other recommendations 14
Hong Kong as a “gateway” to China (financial and trade center)16

Hong Kong Special Administrative Region (HKSAR), commonly known as Hong Kong, is now witnessing its greatest transformation into a knowledge-based economy (KBE). Overview of Hong Kong Economy and Human Capital

Currently the country is focusing on improving its balance of the high emerging demand for appropriate human capital with its limited supply of high educational labor pool. Listed are some of the trends its labor market is experiencing: Redistribution of Economic Sectors of the Workforce towards Service-Oriented Sector Hong Kong saw a major trend in moving towards service-oriented sector. As indicated in the case study, there used to be 26.2 % of the total working population in the trade-related sector, 25.5 % in service sector, 16.1 % in the finance-related field and 12.3 % in the manufacturing industry in 2001. Since then the country effectively moved towards the service sector due to its insufficient natural resources which required more imports of commodity and materials. In 2009, service sector generated up to 92 % of the country’s GDP. Industry and agriculture fell to 7.6 and 0.1 %, respectively. Rising Median Monthly Income

In 2001, the median monthly income increased from $5,170 in 1991 to $10,000 which resulted in higher overall consumer prices of 53 % increase. In 2010, education and public administration (excluding Government) and financial sector offered one of the highest earning at $129 per hour and $106 per hour, respectively. Basically, there is a stable rise in income in most sectors except for the manufacture-related jobs that has a negative 0.3% fall in income.2 [APPENDIX E] Expanding Labor Force

The total labor force has increased constantly at the average annual growth rate of 2% from 1991 to 2001 and continued rising more rapidly from 2.44 million to approximately 6.1 million in 2010.1 Growing Female Participation in Labor Force

There has been a vast incline of the number of female participation in Hong Kong’s labor force since 2001 at 1.31 million to 3.29 million in 2010. Female participation rate in Hong Kong surpasses that of the male by approximately 500,000 in 2010 and is projected to increase to 600,000 in 2019.1 [APPENDIX D] Ageing of the Workforce

In 2010, the demographic profile in Hong Kong indicates that the majority of its citizen, approximately 76 %, is in the age range between 15-64 years old (Appendix A). This along with its constantly lower population growth rate and low fertility rate of 1.04 children for one woman, even lower than China which is implementing a one-child policy, will affect the country’s future labor pool. Changing of Labor Force Participation Rate

Despite the rapid rise of total labor force in Hong Kong, the country is facing a decline in the labor force participation rate in 2001, especially for males which dropped by approximately 7% to 71.9%. Females on the other hand saw a slight increase to 51.6% from 49.5% in...
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