Annual Report 2008

The objective of the Employment Services Programme is to provide a comprehensive range of free and efficient employment assistance and counselling services to help job-seekers find suitable jobs and employers fill their vacancies. We achieve this by:

• providing user-friendly employment services to employers and job-seekers;
• offering intensive employment-related assistance and personal service to vulnerable groups of unemployed people;
• assisting young people to enhance their employability and advising them on careers choice;
• regulating local employment agencies;
• safeguarding the interests of local employees employed by employers outside Hong Kong to work in other territories; and
• ensuring that employment opportunities for local workers are not adversely affected by abuse of the labour importation scheme.

The two principal legislation administered by this programme area are the Employment Agency Regulations made under the Employment Ordinance and the Contracts for Employment Outside Hong Kong Ordinance.

The Employment Agency Regulations, together with Part XII of the Employment Ordinance, regulate the operation of employment agencies in Hong Kong through a licensing system, inspection, investigation and prosecution.

The Contracts for Employment Outside Hong Kong Ordinance safeguards the interests of local manual workers and those non-manual employees with monthly wages not exceeding $20,000 who are recruited by employers outside Hong Kong to work in other territories through the attestation of employment contracts for these jobs.

The department posted an all-time high of 671 770 vacancies from the private sector in 2008, an increase of nearly 20 per cent when compared with 559 815 in 2007. For updated statistics on the labour force, unemployment rate and underemployment rate, please visit the webpage: www.censtatd.gov.hk/hong_kong_statistics/statistical_tables/index.jsp?charsetID1&subjectID=2&tableID=006

To better serve the public, the department vigorously stepped up its employment services for job-seekers. A record-high number of 146 308 placements was achieved in 2008, up 8 per cent over the level of 135 489 in 2007. (Figures 5.1 and 5.2)

Job-seekers can select suitable vacancies and seek referral service at all job centres. Modern facilities such as digital display system, self-service touch-screen vacancy search terminals, fax machines, toll-free telephones, computers connected to the Internet and a resource corner are available.

Through the Job Matching Programme, placement officers help job-seekers evaluate their academic qualifications, job skills, work experience and job preferences, and encourage them to match for suitable jobs actively. Placement officers also introduce suitable retraining courses to job-seekers where appropriate.

Job-seekers registered at the Labour Department may call our Telephone Employment Service Centre on 2969 0888 for job referral service. Through conference calls, staff of the Centre can make arrangement for job-seekers to talk to employers directly.

Our Interactive Employment Service (iES) website (This link will open in a new windowwww.jobs.gov.hk) provides round-the-clock on-line employment service and comprehensive employment information. The iES is one of the most popular government websites, recording over 940 million page views and accounting for 19 per cent of the page views for all government websites in Hong Kong in 2008. It hyperlinks with leading employment websites in Hong Kong and hosts a number of dedicated webpages for specific clientele. In December, the iES introduced a new dedicated web page to display vacancies offered by employers who were interested in recruiting employees who lost their jobs in closure or redundancy exercises.

Employers who need to recruit staff can send their vacancy information to our Job Vacancy Processing Centre by fax (2566 3331) or telephone (2503 3377) or through the Internet (This link will open in a new windowwww.jobs.gov.hk). Vacancy information will be posted at all job centres and uploaded onto the iES in one working day.

We organise a variety of activities to promote our employment services and appeal for vacancies from employers. Job fairs are held to facilitate job-seekers and employers to meet and communicate directly. To assist job-seekers living in remote areas in securing employment, large-scale job fairs were held in Tin Shui Wai, Tuen Mun, Tsing Yi and Tseung Kwan O in 2008. Moreover, to respond more promptly to the recruitment needs of employers and provide a more user-friendly service to job-seekers of different districts, we held mini-job fairs at Job Centres to assist employers to recruit local staff and to enable job-seekers to participate in job interviews without having to travel long distance. In the year, 10 large scale job fairs and 197 mini-job fairs were held, attracting some 47 000 job-seekers.

The Employment Programme for the Middle-aged was launched in May 2003 to assist the unemployed aged 40 or above to secure employment. Employers who engage an eligible middle-aged job-seeker in a full-time permanent job and offer him/her on-the-job training will receive a training allowance of $1,500 per month, for up to three months. As at the end of 2008, a total of 42 511 placements were secured through the programme.

We launched the Work Trial Scheme in June 2005 to enhance the employability of job-seekers who have special difficulties in finding jobs. There is no age limit for applicants. During the one-month work-trial without employer-employee relationship, participants will be arranged to take up jobs offered by participating organisations. On satisfactory completion of the one-month work trial, the Labour Department will pay each participant an allowance of $4,500, while the participating organisation will contribute an additional allowance of $500. The allowance for participants was raised to $5,000 with effect from September 1, 2008. As at year end, a total of 2 167 job-seekers were placed into work trials.

The objective of the Transport Support Scheme is to provide time-limited allowances as an incentive for residents in the four designated remote districts viz. Yuen Long, Tuen Mun, the North District and Islands District to seek jobs and stay in employment. Recognising the relative lack of job opportunities in these districts and the high transport costs incurred, the time-limited Transport Support Scheme enhanced support to these residents with a view to addressing these concerns. After reviewing the effectiveness of the scheme, the Labour Department implemented a range of relaxation measures in July. Under the relaxed scheme, time-limited transport allowances, viz. Job Search Allowance of up to $600 and On-the-job Transport Allowance of $600 per month for up to 12months are made available to eligible applicants.

As at the end of 2008, the relaxed scheme had received 17 718 applications.

To address the mismatch in supply and demand in the LDH market and to promote LDH service, the Special Incentive Allowance Scheme was launched in June 2003. The scheme provided incentive allowance to qualified LDHs who were willing to work across districts or during unsocial hours (i.e. outside 9 am to 5 pm on Monday to Friday). Successful applicants received an allowance of $50 per day, with an overall cap of $7,200.

The Scheme has accomplished its mission of promoting the LDH market, as evidenced by the much enhanced demand for LDHs and their increased wages. The beneficiaries of the scheme reached 12 600 which far exceeded the original target of 8 000. A total sum of $55 million was paid out. The scheme was concluded in end-October 2008 as planned.

We provide through our job centres a comprehensive range of employment services to new arrivals. These include employment counselling, job referral, employment briefing and employment information.

In major business closure or redundancy cases, the Labour Department sets up hotlines for enquiry and special counters at Job Centres to provide priority job referral and job matching services to affected employees. We appeal to employers to provide suitable vacancies and inform the affected employees of such vacancies to facilitate their job search. In 2008, we offered priority placement services to 3 420 affected employees.

The Selective Placement Division (SPD) offers employment assistance to job-seekers with disabilities looking for open employment. Placement officers will provide personalised employment counselling, job matching services and, where appropriate, make referrals to tailor-made retraining programmes. In 2008, the SPD registered 3 327 disabled job-seekers and helped place 2 490 of them into employment. (Figure 5.3)

The Labour Department launched the Work Orientation and Placement Scheme in April 2005 to enhance the employability of people with disabilities. The scheme features pre-employment training to job-seekers with disabilities on job-search/interviewing techniques and communication/interpersonal skills, etc, as well as a monthly allowance to the participating employers equivalent to half-month's wages of eachof such employees engaged (subject to a ceiling of $3,000) for up to three months. As at the end of 2008, the scheme recorded 1 236 participants in this training programme and achieved 1 223 work placements.

The Self Help Integrated Placement Service (SHIPS) aims at improving the job-searching skills of job-seekers with disabilities and encouraging them to be more proactive in the search for jobs, thereby enhancing their employment opportunities. In 2008, 488 job-seekers with disabilities participated in the programme. The overall placement rate was about 74 per cent.

The Interactive Selective Placement Service (iSPS) Website (This link will open in a new windowwww.jobs.gov.hk/isps) provides enhanced employment services for job-seekers with disabilities and employers through the Internet. The website enables persons with disabilities to register with the SPD, browse job vacancy information and perform preliminary job-matching. It also enables employers to place vacancy orders, identify suitable job-seekers with disabilities to fill their vacancies and request the SPD to refer candidates to them for selection interview.

During the year, the SPD produced a series of promotional video on success stories of employment of people with disabilities to enhance public understanding of the working abilities of people with disabilities. We also held seminars for employers and conducted special promotional campaigns on targeted trades to canvass job vacancies.

The YWETS features: (1) 50 hours of career guidance and counselling services to trainees by case managers who are registered social workers; (2) 40 hours of induction training on communication and interpersonal skills for trainees; (3) a monthly training subsidy of $2,000 per trainee payable to employers during the training period; and a training allowance of $4,000 payable to trainees for undertaking off-the-job vocational training courses. As at the end of 2008, 40 450 trainees were successfully placed in training vacancies under the scheme. In addition, 18 870 trainees found other jobs with the assistance of their case managers.

In 2008, the YWETS continued to develop tailor-made projects for industries and individual establishments. Collaboration between the YWETS and the Youth Pre-employment Training Programme (YPTP) enabled the running of "through train" training programmes under which pre-employment job skills training custom-made for a particular establishment as provided under the YPTP was immediately followed by on-the-job training under the YWETS. This mode of training is well received by establishments and trainees. In 2008, 19 such tailor-made training-cum-employment projects were run for employers in the retail, catering, tourism, telemarketing, health care, real estate agency and property management industries. Besides, special employment projects were co-organised with establishments offering large number of on-the-job training vacancies.

The YPTP provides a wide range of employment-related training and workplace attachment opportunities to young persons aged 15 to 19. Government departments, training bodies and voluntary agencies join hands to provide the following four modular training: (a) leadership, discipline and team building; (b) job-search and interpersonal skills; (c) elementary/ intermediate computer application; and (d) job-specific skills training. Organisations from the private and public sectors as well as social welfare agencies also offer workplace attachment places for trainees so that they can obtain practical work experience and better understand the real work environment. Professional youth workers are available to provide career counselling and support services throughout the programme. In 2008, about 5 100 young persons were provided with such training and workplace attachment opportunities. Apart from those pursuing further studies on completion of the programme, over 70 per cent of the trainees secured employment.

To maximise the benefits for trainees of the YPTP and the YWETS, a "Revolving Door" mechanism has been introduced by allowing them to move between the two programmes during a programme year. Together, the two programmes provide one-stop training and employment services to young people aged 15 to 24.

To encourage trainees to attend pre-employment training so as to enhance their employability, trainees are entitled to a transport allowance of $30 per day, subject to attending at least 80 per cent of a YPTP modular/tailor-made training course or the YWETS induction training.

We organised the Award Ceremony for the Most Improved Trainees of YPTP and YWETS in July to showcase the benefits brought to the trainees through the two programmes and commend the caring efforts of training bodies and employers. The stories of the trainees in striving for improvement had provided the best encouragement to their peers and solidly exemplified the achievements of the trainees, training bodies, employers and the Government in nurturing the development of the young generation.

The Labour Department operates two youth employment resource centres named Youth Employment Start (YES). The two centres provide one-stop service on employment and self-employment to young people aged between 15 and 29 to facilitate them to map out their career path, enhance their employability and support young people to conduct their businesses. Services provided include career assessment, career guidance, value-added training, support services on employment and self-employment as well as up-to-date labour market information. In 2008, the two centres provided services to 63 636 young people.

We monitor the operation of employment agencies through licensing, inspection and investigation of complaints. In 2008, we issued 1 949 employment agency licences and rejected one licence application. As at year-end, there were 1 887 licensed employment agencies in Hong Kong. A total of 1 321 inspections were made to employment agencies in the year.

We regulate employment outside the territory to safeguard the interests of local employees engaged by employers outside Hong Kong to work in other territories by attesting all employment contracts entered into in Hong Kong involving manual employees and non-manual employees with monthly wages not exceeding $20,000.

To cater for the genuine needs of employers, the department administers the Supplementary Labour Scheme that allows the entry of imported workers to take up jobs at technician level or below which cannot be filled locally. The scheme operates on the principles of ensuring the priority of local workers in employment while allowing employers with proven local recruitment difficulties to import labour to fill the necessary job vacancies.

We provide active job matching and referral services to local job-seekers to ensure their employment priority. Vacancies under the scheme are widely publicised locally. To facilitate local workers in filling the vacancies, they could attend tailor-made retraining courses, if appropriate. Applications from employers who have set restrictive or unreasonable requirements in terms of age, education, sex, skill or experience for the vacancies or who have no genuine intention to employ local workers will be rejected.

As at the end of 2008, there were 1 338 imported workers working in Hong Kong under the Supplementary Labour Scheme.

FDHs have been admitted to work in Hong Kong since the 1970's. Apart from the statutory rights and benefits applicable to all employees in Hong Kong, FDHs are further protected by a standard written employment contract. The standard employment contract prescribes that, inter alia, the employer has to provide to the FDH free accommodation with reasonable privacy, free food (or food allowance in lieu), free passage to and from the FDH's place of origin and free medical treatment, etc. Furthermore, the Government has since the 1970s prescribed a Minimum Allowable Wage for FDHs as an additional safeguard against exploitation. The Government attaches great importance to safeguarding their statutory and contractual rights. Claims of breach of statutory rights will be promptly investigated and prosecution action will be taken if there is sufficient evidence. In the year, the department also widely publicised the rights and benefits of FDHs by, for instance, staging one information kiosk for FDHs at a place they frequently gather on their rest day in February. The event attracted over 6 000 visitors. The Labour Department also maintained close liaison with consulates of the FDH-exporting countries, non-government organisations serving FDHs and FDH employer groups to better address issues relating to importation of FDHs.

As at the end of 2008, there were 256 597 FDHs in Hong Kong, an increase of 4.5 per cent compared with 245 500 in 2007. About 49 per cent of the FDHs in Hong Kong were from the Philippines and 48 per cent from Indonesia.