Labour market employmentLabour market means labour force and productivity, the efficient labour markets matching workers with the most suitable jobs for their skillset. A competitive economy is a productive one. According to the World Economic Forum reports, flexible labour market employment rank of Hong Kong is 4, Hong Kong does well in this aspect but exists some weakness. What components doing well and what aspect should be improved? Hong Kong has good flexibility with the flexibility of wage determination and Hiring and firing practices. Those two factors lend Labour supply become very stable, employees did not change their job easily because Hong Kong doesn’t have any unemployment insurance or unemployment protection. Hong Kong keeping a low employment rate 3.1%. Low employment rate lends to highest productivity because have a stable human capital input.
It increases the income level of employees and enhances economic growth, people have well being. Hong Kong even has a good Effect of taxation on incentives to work, companies adopting good incentive to retain talent person, match the right labor in a right position, increase productivity. The flexible of wage determination can attract foreign investment in Hong Kong, increase the GII of Hong Kong, increase competitiveness.The strength of Hong Kong is good flexible of the labour market, but still, have some weakness and need to ameliorate.
The first aspect, gender equality. The Hong Kong ranking of Female participation in the labor force is 75/137, worse than China 59/137. It means Hong Kong wasted huge useful human capital. The population of female is bigger than male, Hong Kong should increase the female labor participation to increase productivity and competitiveness depends on new technology or social attitude. Hong Kong should promote the accumulation of human capital and the use of talent at its full potential, especially in female workers. Female is a big power to make Hong Kong become competitive, our chief executive “Carrie Lam” is an example of talent female worker. When Hong Kong have more and more female worker, it increases the total labour force, increase total output and productivity, economic growth and raise income level and increase in Disposable income, Well-being, increase global competitiveness.
Beside female employee, Hong Kong company should know how to retain the talent person. The Hong Kong ranking of Country capacity to retain talent is 10/137. It means Hong Kong could not retain talent easily because still have 9 countries. Retain employee can reduce job hire promotion costs, training costs and the time to adopt company culture and working process.
Pay models should be attractive, include much of benefit, insurance and incentive to retain the best employee in Hong Kong. Human capital is the most important to increase working efforts and competitive. Hong Kong has a good effect on taxation in incentives to work, it means extra incentive is costlier that extra merit pays. Hong Kong company can use the better price to provide attractive benefit to retain talented human capital. Talent employee chasing batter working environment more than salary, increase the reliance on professional this is the advantage of Hong Kong to retain talent person.When Hong Kong can expand the labour force market and attract or retain more and more talent employee, Hong Kong has a better human capital, stable output quality, and quantity because it increases in labor supply and matches workers with the most suitable jobs for their skillset. It can increase the productivity and global competitiveness.